In a bid to improve performance, the National Treasury will introduce an outcomes-based system that excludes subjectivity in the performance management of employees.
This is according to a submission by the National Treasury to parliament’s standing committee on finance on Tuesday. The Treasury briefed the committee on its annual performance and strategic plan.
The programme’s stated aim of improving performance outcomes in the department, allocated R23bn in 2025, is expected to allow National Treasury technocrats to support better spending outcomes from departments that account for much of the national budget, including education, health and social security.
It will also give the National Treasury more momentum to further its inroads into fiscal gains it has achieved, including the realisation of a primary budget surplus, which was R48.9bn in 2025.
The briefing highlighted the department’s management of its R23bn allocation and efforts to support other departments’ expenditure outcomes.
Laura Mseme, chief director of strategic management and oversight, told the committee the chief directorate operational plan ensures alignment between individual performance and chief directorate performance.
“The plan is a component of National Treasury planning that we’ve introduced. This ensures that we plan as close to our function delivery locations as possible. It also allows us to continuously update our plans as the work changes, either by addition or shifting.
The chief director of operational plans creates a “direct link” between the organisation’s performance and the review of its employees.
“There is an absolute alignment between the outcomes of a chief director’s operational plan performance and the individual performance of chief directors and [deputy directors-general].”
She said the chief directorate operational plan will be instrumental in driving internal accountability for performance benchmarks among chief directors at an individual and a divisional level.
“We recognise that in chief directorates delivering on their objectives it allows us, through that golden thread of planning, to deliver on our [medium-term budget policy] plans.”
She said the National Treasury did not amend its 2025 strategic plan after drafting. The annual performance plan has a “very full” update to institutional strategies for the year, in culmination of significant work, which will now be sent to the cabinet and parliament for consideration.
We recognise that in chief directorates delivering on their objectives it allows us, through that golden thread of planning, to deliver on our [medium-term budget policy] plans.
— Laura Mseme, chief director of strategic management and oversight
“That includes the Public Finance Management Act as well as the Municipal Finance Management Act,” she said.
She also said that under its administration programme the National Treasury is working to digitise the department’s initiatives by piloting the data exchange platform, Mzansi Exchange, on which the department plans to brief the committee in due course.
“Ensuring that Treasury staff skills are honed and ensuring they are good managers, we have initiated a management training programme in partnership with Stellenbosch University. This ensures that while Treasury’s officials are all technically experts, they also need to be excellent managers.”
She said the management training programme will focus on management aspects, including media management, senior management, and negotiating in management positions, as well as a programme on women in management.
She said key priorities include maintaining a primary budget surplus, providing guidance for municipal finance management, and issuing a report on the financial affordability of the social security system.
Minister of finance Enoch Godongwana said the National Treasury’s efforts continue to focus on the following pillars of growth and development:
- Maintaining macroeconomic stability;
- Implementing structural reforms;
- Investing in growth-enhancing infrastructure; and
- Building state capacity.
“The National Treasury will continue to play a central role in safeguarding the sustainability of the public finances, strengthening the credibility of fiscal policy and ensuring public resources are deployed in a manner that supports inclusive growth, social protection and long-term development.
“This [annual performance plan] reflects the National Treasury’s commitment to prudent fiscal management, transparent governance and effective use of public resources. It is a practical roadmap through which we will support the government’s broader objectives of higher economic growth, job creation and improved living standards for all South Africans.”
According to the submission to the committee, the National Treasury had an unaudited expenditure of R23bn for 2025/26, a 98% execution of the budget of R23.8bn.
This left R800m in unspent funds, comprising mostly advances paid to entities for the year, which will only be recognised as expenditure when they meet the criteria of expenditure by those entities.
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