North West Rebuts Claims of R383M Budget Return, Confirms 99.29% Spend Rate

The North West Provincial Government has firmly denied allegations circulating in the media and raised by opposition parties that it will return R383 million of its 2024/25 budget to the National Treasury due to underspending. Officials have clarified that 99.29% of the province’s R54.2 billion budget was utilized—marking a significant improvement compared to previous years.

According to preliminary audit outcomes, the province spent approximately R53.9 billion by the end of the financial year, contradicting reports that underspending would lead to the forfeiture of hundreds of millions in unutilized funds.

“This is a much-improved performance compared to the previous financial year, with only two departments spending below a threshold of 95%,” a provincial spokesperson stated.

Breakdown of the R383 Million

The R383 million figure cited by opposition voices refers to unspent funds, but the provincial government has emphasized that this amount will not be returned to National Treasury. Instead:

• R176 million, stemming from the equitable share allocation, will remain with the province.

• The remaining R207 million is set to roll over into the 2025/26 financial year.

This rollover mechanism is in line with standard Treasury regulations, allowing provinces to continue using unspent but committed funds in subsequent fiscal periods.

“Already, National Treasury has approved R172 million, which will be re-appropriated through the November adjustment budget,” said the provincial government in a statement.

These funds are earmarked for infrastructure projects aimed at improving service delivery, boosting local economies, and addressing socio-economic challenges across the province.

Opposition Questions Spending Gaps

The controversy was sparked by claims from an opposition party that, despite high spending rates in most departments—between 98% and 99%—the total underspending figure remained significant in real terms. The party further alleged that key departments underperformed, raising concerns about budget execution efficiency and service delivery outcomes.

Calling for greater accountability, the party demanded that the provincial government explain the R383 million underspend, and clarify how critical services and development projects may have been affected.

A Year of Improved Financial Management

In response, the North West Provincial Government highlighted the improvements in financial discipline and departmental coordination compared to previous fiscal years. The province has historically struggled with low budget absorption rates, resulting in delayed infrastructure delivery and reduced public trust.

However, the latest expenditure figures are being presented as evidence of greater financial maturity and improved public fund stewardship.

“The narrative that R383 million is going back to National Treasury is false and misleading,” a senior provincial official reiterated. “The majority of these funds are being retained for essential public infrastructure and development.”

Looking Ahead: Budget Adjustments and Service Delivery Focus

The approved R172 million adjustment will feature in the province’s November adjustment budget, and the funds will be strategically redirected toward critical areas such as:

• Road and school infrastructure upgrades

• Healthcare facility refurbishments

• Water and sanitation projects

• Job creation and local economic development initiatives

The provincial government has also reaffirmed its commitment to transparency and good governance, promising to publish detailed allocations and expenditure plans in the forthcoming adjustment budget to reassure the public and stakeholders.

Strengthening Provincial Accountability

Amid the ongoing scrutiny, the North West Provincial Treasury and the Office of the Premier are reportedly conducting internal reviews to tighten expenditure controls and strengthen monitoring mechanisms—especially in departments that fell below the 95% spending benchmark.

The province’s communication team has urged political parties and media outlets to verify facts before making public claims, warning that misinformation undermines public confidence and distracts from the broader developmental agenda.

“We remain committed to ensuring every rand is spent effectively and in the best interest of our people. The focus is now on rolling out the remaining funds to accelerate service delivery and uplift communities,” the government concluded.