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Government projects R38bn in savings over three years

Published

The medium-term budget policy statement says the Tars programme will save R38bn over three years, on top of R12bn identified in the 2026 budget. Government plans to redirect the money to priorities such as child nutrition, gender-based violence and economic development.

The savings come from grants, departments, public entities and an early retirement programme. Social grants account for R13.1bn over the medium term. Of that, R6.2bn comes from a decline in the number of beneficiaries, from 17.8-million in 2026/27 to 17.1-million by 2029/30.

Pausing the human settlements development grant over three years saves R7.8bn. National departments will save R11.7bn over the medium term. Some public entities have built up cash surpluses, and R5.5bn will move to the National Revenue Fund in 2027/28.

The early retirement and voluntary exit programme is projected to save R4.3bn in 2027/28, R4.4bn in 2028/29 and R4.6bn in 2029/30. So far 27,450 applications are approved. The statement says the average annual saving could fund 7,101 additional posts without breaching compensation ceilings.

The statement says savings will go to preventing gender-based violence and femicide. It also says they will support health interventions against child malnutrition and stunting. A ghost worker audit flagged 4,323 high-risk suspicious cases in the payroll system.

Key facts

Who
MTBPS (Medium-term budget policy statement, source of the savings projections)
What
The medium-term budget policy statement (MTBPS) sets out R38bn in projected savings over three years under the Tars programme, to be redirected to priority spending such as child nutrition, gender-based violence and economic development. Savings come from grants, departments, public entities and an early retirement programme.
When
21 October 2026
Status
Reported

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