POLOKWANE – The Limpopo MEC for Finance, Kgabo Mahoai, has tabled a R95.586 billion Limpopo Provincial Budget on Tuesday, March 10 2026, at the Limpopo Provincial Legislature in Lebowakgomo.

Budget aligned with SOPA, LDP, and National Development agenda

The budget outlines the province’s spending priorities for the 2026/27 financial year, while also projecting for the Medium-Term Expenditure Framework (MTEF).

The budget speaks to the State of the Province Address (SOPA), the Limpopo Development Plan (LDP), the Medium-Term Development Plan (MTDP) and the State of the Nation Address (SONA).

Mahoai has placed emphasis on infrastructure recovery following recent disasters, strengthening service delivery, stimulating economic activity, and improving financial governance across departments and municipalities.

During his address, Mahoai said the provincial budget synchronises funding with the commitments made by Premier Dr Phophi Ramathuba during the State of the Province Address. He said the allocations are also aligned with national fiscal priorities and the broader development agenda of government.

Mahoai explained that the R95.586 billion provincial budget is financed through three principal sources, namely conditional grants, equitable share and provincial own revenue.

The largest portion is derived from the equitable share allocation transferred from the national government. This funding enables provinces to provide essential services such as education, healthcare and social support.

According to the budget speech, the provincial equitable share amounts to R78.951 billion, representing 83.1 percent of the total provincial revenue.

A second component consists of conditional grants. These are allocations from national departments that must be used for specific programmes, including school infrastructure, healthcare services, road infrastructure and disaster recovery initiatives. The province will receive R13.810 billion in conditional grants for the 2026/27 financial year.

The third source is provincial own revenue. This income is generated within the province through motor vehicle licence fees, gambling taxes, patient fees collected at public health facilities and other service charges administered by provincial departments. Provincial own revenue is projected to amount to R2.240 billion.

The remaining R585 million is financed from reserves.

Together these streams constitute the fiscal resources available to fund government programmes in Limpopo.

Breakdown by cluster: Social, economic and governance

Provincial spending is organised through clusters that group departments according to their mandates.

Social cluster

• The social cluster receives the largest share of the provincial budget. This cluster includes the Departments of Education, Health, Social Development and Sport, Arts and Culture.
• These departments provide essential services related to schooling, healthcare delivery, social welfare programmes and cultural development.
• The social cluster accounts for the largest share of departmental allocations, including Education with R45.821 billion, Health with R28.684 billion and Social Development with R2.476 billion.

Economic cluster

• The economic cluster comprises departments responsible for infrastructure and economic growth. These include Economic Development, Environment and Tourism, Agriculture and Rural Development, Public Works, Roads and Infrastructure, Transport and Community Safety as well as Sport, Arts and Culture.
• Funding in this cluster supports agricultural production, road networks, infrastructure development and programmes aimed at strengthening the provincial economy.
• Allocations include R3.187 billion for Transport and Community Safety, R1.998 billion for Agriculture and Rural Development and R1.814 billion for Economic Development, Environment and Tourism and as well as R852.902 million for the Department of Sport, Arts and Culture.

Governance cluster

• The governance and administration cluster includes the Office of the Premier, Provincial Treasury and the Department of Cooperative Governance, Human Settlements and Traditional Affairs.
• These institutions oversee policy coordination, financial oversight, governance systems and support to municipalities. Allocations in this cluster include R2.583 billion for Cooperative Governance, Human Settlements and Traditional Affairs, R653.531 million for the Office of the Premier and R557.930 million for Limpopo Provincial Treasury.

Detailed allocations: What each department receives

Education and Health remain the two highest funded departments in the province. The Department of Education receives R45.821 billion, the largest allocation in the provincial budget. Mahoai noted that education remains a labour-intensive sector which requires a large workforce to function effectively.

“Education remains the backbone of our human development agenda, requiring thousands of teachers across the province to deliver quality learning in our schools,” he said.

The Department of Health receives R28.684 billion, reflecting the personnel requirements necessary to sustain healthcare services.

“Healthcare services rely on skilled professionals such as doctors, nurses, pharmacists and other health workers who ensure that hospitals and clinics continue to serve our communities,” Mahoai told the legislature.

Meanwhile, the Department of Social Development receives R2.476 billion to support social welfare programmes aimed at assisting vulnerable households.

Flood-damaged infrastructure

A significant portion of the budget speech addressed disaster recovery following recent floods that damaged roads and infrastructure across the province.

Mahoai told the legislature and the public that government has already begun redirecting funds within the current financial year to support urgent disaster recovery projects.

“We have identified R736.640 million in possible savings from the 2025/26 allocated budget to be redirected towards disaster rehabilitation projects,” he said.

He further announced that the province is reallocating R685.340 million through the 2025/26 budget adjustment process to fund immediate disaster recovery interventions. The funding will support the rehabilitation of damaged roads, bridges and other public infrastructure.

Government also plans to ensure that future infrastructure projects are designed to withstand extreme weather conditions linked to climate change.

Treasury to intensify oversight and monitoring

Mahoai also emphasised the importance of accountability and proper financial management. Provincial Treasury will intensify financial oversight across departments and strengthen monitoring systems to ensure that funds are spent according to approved plans.

Compliance with procurement processes and financial regulations will be closely monitored.

The province also plans to conduct regular visits to construction sites of priority infrastructure projects.

“These visits will allow us to monitor progress, ensure value for money and prevent irregular expenditure or corruption in the implementation of projects,” Mahoai said.

Stimulating growth and employment

The provincial budget also prioritises economic development through catalytic projects aimed at stimulating growth and employment. Infrastructure development programmes are expected to create jobs during the construction phase while also supporting local businesses.

Government plans to expand support for small, medium and micro enterprises so that local contractors and emerging businesses can benefit from procurement opportunities linked to public infrastructure projects. These interventions are expected to contribute to job creation and strengthen the provincial economy.

Support for municipalities

The budget speech also addressed the financial challenges facing municipalities in the province.

Municipal finances are governed by the Municipal Finance Management Act, which was introduced after the Public Finance Management Act that regulates national and provincial government finances.

Mahoai acknowledged that municipal financial management systems are still developing and face several challenges. Provincial Treasury plans to strengthen support to municipalities through technical assistance, financial oversight and improved monitoring of compliance with financial legislation.

The Limpopo Provincial Treasury also intends to use its powers to intervene where necessary to help municipalities improve budgeting systems, strengthen revenue collection and ensure responsible expenditure.

Through these measures, government hopes the provincial budget will translate into improved infrastructure, better service delivery and stronger economic growth for the people of Limpopo.