Government releases municipal funds to protect essential services

National Treasury will release the remaining withheld July 2026 local government equitable share allocations from July 31, so municipalities can keep delivering basic services, especially to poor and vulnerable residents.

The decision does not signal that the affected municipalities have fully fixed their financial management or governance problems.

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They remain fully responsible for complying with every legal and financial requirement.

Government is still committed to tightening financial accountability, improving governance, and taking action against unauthorised, irregular, fruitless, and wasteful expenditure, as well as financial misconduct and weak oversight.

The move balances the need to enforce proper financial controls with the duty to avoid interruptions to essential municipal services.

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Municipal councils and officials must now improve governance, complete outstanding investigations, apply disciplinary measures where required, and ensure public money is handled lawfully, transparently, and responsibly.

Support for municipalities to strengthen financial systems will continue, alongside firm action wherever needed to safeguard public funds and secure sustainable service delivery ahead of the December 2026 and March 2027 equitable share assessments.

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