National Treasury Issues 2026 MTEF Technical Guidelines

Posted 31 July 2025 Written by Acts Online
Category Public Finance Management

Brought to you by SA Legal Academy: National Treasury has issued the 2026 Medium Term Expenditure Framework (MTEF) Technical Guidelines, establishing the framework for the 2026/27 Budget preparation and introducing a new mechanism for identifying targeted savings.

In terms of the media statement issued on 23 July 2025, National Treasury has released the latest technical guidelines for the rolling three-year MTEF. These guidelines set the rules and processes for preparing revenue projections and expenditure estimates that will inform the Medium Term Budget Policy Statement (MTBPS) later this year.

The 2026 guidelines introduce a specific focus on “targeted and responsible savings,” representing a departure from previous budgetary approaches. This mechanism is designed to:

  • Identify and remove low-priority or underperforming programmes from the national budget.
  • Reduce aggregate expenditure based on findings from previous spending reviews.
  • Reallocate recovered funds to programmes prioritised in the government’s medium-term development plan.

The guidelines provide the technical requirements for departments to justify their 2026/27 Budget submissions within the context of these actionable reforms. The introductory section of the guidelines notes that these measures are developed to address specific fiscal challenges and clarify the process for preparing MTEF allocations.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact is channelled through professional advisory roles regarding public sector financial management.
  • For your business: Professional services firms and contractors engaged with state organs must monitor the potential termination of underperforming programmes, as the new savings mechanism may lead to the cancellation of low-priority projects or contracts.
  • For your clients: Public sector clients and entities reliant on government grants must ensure that their 2026/27 budget submissions are supported by robust performance data to mitigate the risk of being identified for “responsible savings” cuts.

Originally published at https://legalacademy.co.za/news/read/in-the-spotlight-2026-medium-term-expenditure-framework-technical-guidelines

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