Division of Revenue Amendment Bill, Adjustments Appropriation Bill & Special Appropriation (2026/27) Bill

Every year, roughly halfway through the financial year, the Minister of Finance tables a Mid-Term Budget Policy Statement (MTBPS) — sometimes called the 'mini-budget' — to give Parliament and the public an updated picture of how the country's finances are looking compared to what was planned at the start of the year. This mid-year process is governed by the Money Bills and Related Matters Act No. 9 of 2009, which sets out the legal rules for how Parliament must deal with money bills. Sections 6(1) and 12 of that Act specifically require the Minister to table certain bills alongside the MTBPS — including a bill to adjust how revenue is divided between different levels of government, a bill to adjust the main budget appropriations, and where necessary a special appropriation bill for a specific financial year. The Select Committee on Appropriations in the National Council of Provinces (NCOP) — the house of Parliament that represents the provinces — is legally required to consider and report on these bills. The same obligation falls on the equivalent committee in the National Assembly. This process exists so that government spending can be corrected mid-year if circumstances have changed, and so that Parliament, not just the executive, has a say in how public money is used.

All South Africans are affected because these bills determine how government money flows to the services people rely on every day — schools, clinics, roads, water, housing and social grants. However, some groups feel the impact more directly than others.

Provinces and provincial departments are directly affected by the Division of Revenue Amendment Bill, which can change how much money each province receives from the national pot, including adjustments to conditional grants — money that is ring-fenced for specific purposes like education infrastructure or health programmes.

Local governments and municipalities are similarly affected, since the bills can adjust grants and transfers that flow down to them, impacting their ability to deliver basic services like water, sanitation and electricity to residents.

Civil society organisations, community groups, and service delivery advocates have a stake because changes to conditional grants can speed up or slow down projects in their areas. The public hearing process is specifically designed to give these groups a platform to raise concerns.

Ordinary citizens — particularly those who depend on government services — are affected by whether spending adjustments are realistic and properly targeted. If money is shifted away from frontline services or if under-spending is not corrected, real people waiting for hospitals to be built or roads to be fixed feel the consequences.

Three separate but related bills have been tabled together as part of the 2026 MTBPS package.

The Division of Revenue Amendment Bill (Bill B29 of 2026) proposes changes to how national revenue is divided between the three spheres of government — national, provincial and local government — as well as between different arms of government within each sphere. This covers the next three years of spending plans, not just the current year. It can also make substantial adjustments to conditional grants that flow to provinces and municipalities, changing the amounts or conditions attached to specific grant funding.

The Adjustments Appropriation Bill (Bill B30 of 2026) proposes changes to the main budget that was approved at the start of the financial year. An appropriation bill is essentially Parliament's permission slip for government to spend money. This adjustment bill allows government to revise those approved spending amounts — increasing some, reducing others, or shifting money between departments — to reflect changed circumstances halfway through the year.

The Special Appropriation (2026/27 Financial Year) Bill (Bill B31 of 2026) is a separate bill that deals with a specific, dedicated appropriation for the 2026/27 financial year. While the source text does not spell out the exact purpose of this special appropriation, such bills are typically used to authorise spending on particular matters that fall outside the normal annual budget process.

The Select Committee on Appropriations is required by law to consider and report on: the spending priorities of national government for the next three years; the proposed division of revenue between spheres and arms of government for the next three years; and any substantial adjustments to conditional grants to provinces and local government. Written submissions are invited from the public, with hearings scheduled for 20 November 2026 (for the Division of Revenue Amendment Bill) and 2 December 2026 (for the other two bills).

These three bills together shape how every rand of public money is directed across the country for the current financial year and the next three years. When the division of revenue is adjusted, it can mean more or less money reaching your local school, clinic, water system or housing project — depending on whether grants are increased, cut or redirected.

For people living in provinces or municipalities that are already under financial pressure, changes to conditional grants can be the difference between a community hall being built or sitting as an empty foundation for another year. If grants are reduced or conditions tightened, local government may struggle to deliver on promises already made to communities.

The public participation process — the call for written submissions and the public hearings — is your legal right and one of the few direct opportunities ordinary South Africans have to influence how public money is spent. Parliament is not just going through the motions here; the Select Committee is legally required to consider what the public says before reporting on these bills. If citizens do not engage, the process happens without their voices.

If these bills are not passed, or are passed without proper scrutiny, government departments may be operating under spending permissions that no longer match reality — leading to either overspending (which is illegal) or money sitting unspent while service delivery suffers. The mid-year adjustment process exists precisely to prevent those outcomes, but it only works well when Parliament and the public hold it to account.