Budget cuts expose public service crisis

FOUNDING PROBLEMS

- SIZWE DLAMINI

AS SOUTH Africa grapples with deepening inequalities and a faltering public service, the recently adopted Budget Vote Reports for 2025 expose a troubling reality: while the government touts nominal increases in budget allocations, the harsh truth reveals a significant erosion of real-term funding.

The Department of Public Service and Administration (DPSA), Public Service Commission (PSC), and National School of Governance (NSG) all face budget cuts that threaten to undermine service delivery and exacerbate existing disparities.

In a virtual meeting this week, the Portfolio Committee on Public Service and Administration, chaired by the DA’s Jan Naudé De Villiers, confronted these critical issues head-on. The reports presented revealed a complex interplay between budget allocations and the pressing needs of public service delivery.

Julius Ngoepe, the committee content advisor, noted that the overall budget allocation for the DPSA for 2025/26 stood at R564 million, reflecting a nominal increase of 4.67% from R539m in 2024/25.

He pointed out: “This amount represents a decrease of 0.03% in real terms,” highlighting the painful reality of inflation outpacing budgetary growth.

The DPSA’s budget over the Medium-Term Expenditure Framework (MTEF) period is projected at R1.8 billion, with a staggering 54.4%, or R966m, earmarked for the compensation of employees (COE). This allocation raised critical questions about the sustainability of service delivery, particularly as spending on transfers and subsidies accounts for only 10.2%, or R178m, with R158m designated for the Centre for Public Service Innovation (CPSI).