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DocumentClosedmedia statement

Media statement: Local Government Revenue and Expenditure: 3rd Quarter Local Government Section 71 Report

The Co-operative Banks Development AgencyRef: https://www.treasury.gov.za/comm_media/press/2026/2026062301%2003.%20Media%20Statement%20-%203rd%20Q%20Section%2071%20-%2022%20June%202026.pdf

Official source

Source domain: treasury.gov.za

Collected on 28 June 2026

Always confirm details on the official source before acting.

Our copy (archived 14 July 2026)Official source

What this means

This document is a media statement of the National Treasury detailing the Local Government Revenue and Expenditure: Third Quarter Local Government Section 71 Report for 2025/26 (period 1 July 2025 to 31 March 2026). It explains the purpose of the Section 71 report, highlights aggregate revenue and expenditure trends, and notes issues such as capital expenditure underperformance, reporting anomalies, and negative cash balances among municipalities. It provides key performance figures against budgets and identifies the report’s role as a tool for in-year management and oversight.

Facts

Reference

https://www.treasury.gov.za/comm_media/press/2026/2026062301%2003.%20Media%20Statement%20-%203rd%20Q%20Section%2071%20-%2022%20June%202026.pdf

Amounts

R 717 200 000 000, R 706 600 000 000, R 521 000 000 000

Key Takeaways

  • period: 1 July 2025 – 31 March 2026
  • report: Local Government Section 71 Third Quarter Report 2025/26
  • source: National Treasury
  • adjusted total revenue budget: R717.2 billion
  • original total revenue budget: R706.6 billion
  • total billed revenue by 31 March 2026: R521 billion
  • revenue performance: 72.6% of adjusted budget
  • total operating expenditure (Q3): R419.9 billion
  • adjusted operating expenditure budget: R630.4 billion
  • operating expenditure performance: 66.6%
  • total capital expenditure (Q3): R41 billion
  • adjusted capital budget: R83.9 billion
  • capital expenditure performance: 49%
  • capital expenditure target at 31 March 2026: R59.2 billion
  • capital underperformance: R18.2 billion (30.7%)
  • salaries and wages adjusted budget: R172.2 billion
  • salaries and wages expenditure (Q3): R120.4 billion
  • salaries and wages performance: 69.9%
  • salaries and wages share of operating budget: 27.3%
  • issue noted: 48 municipalities reported negative cash balances

Dates

Closing Date

1 July 2025