National Assembly Approves Appropriation Bill – But It’s Not Over Yet

Despite political tensions, South Africa’s National Assembly approved the Appropriation Bill in its first reading. This action moved the country closer to finalizing its national budget. However, the process is not over. MPs must still vote on each department’s budget. Parliament must also review the bill further and the National Council of Provinces must approve it before the R1.2 trillion budget becomes law.

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The Appropriation Bill: What Is It and Why Is It Critical?

The Appropriation Bill is the legislative instrument that allocates funding to national government departments for the financial year. Without its passage, the government cannot legally spend most of its budget, directly affecting service delivery in education, health, social grants, and infrastructure.

Deputy Finance Minister David Masondo underscored its importance in plenary:
“This R1.2 trillion is not just a number; it represents school meals, hospital beds, social grants and infrastructure projects that will directly impact the lives of many South Africans.”

How the National Assembly Processes the Appropriation Bill

The bill must pass three main stages in the National Assembly before it can proceed to the NCOP:

1. First Reading: MPs debate the bill’s principles. If rejected, the process ends. This year, the bill cleared this hurdle, but only after a sometimes tense debate.
2. Departmental Votes: Each department’s allocation is debated and voted on individually. All 42 must be approved for the bill to advance.
3. Full Schedule and Second Reading: If all departmental votes pass, MPs consider the full schedule of allocations. Adoption triggers the final (second reading) vote required for the bill’s passage.

On 23 July 2025, MPs gathered at the Cape Town International Convention Centre to debate the Appropriation Bill. The process remains unstable because political disputes over the Department of Human Settlements have not been resolved.

Debate and Key Arguments: Efficiency, Consensus, and Oversight

Before the first reading debate, the National Assembly adopted the Standing Committee on Appropriations’ report on the bill. Mmusi Maimane, chairperson of the committee and leader of Build One South Africa (BOSA), called for clearer priorities and earlier consensus to avoid disruptions:

“We need to be clear about when we do spending reviews. In this medium term, we must be far more efficient in how we deal with the money that has been allocated to us,” Maimane said.

The debate itself was marked by underlying tensions, especially after the DA recently raised objections to the Human Settlements budget due to Minister Thembi Simelane’s alleged involvement in the VBS scandal. The party’s ultimate stance on this departmental vote and thus, on the bill’s fate remains uncertain.

Voting Outcomes: A Strong Majority, But Not Unanimous

After the first reading debate, MPs held a manual vote. The results: 262 MPs in favour, 90 against, and no abstentions. This reflects a clear majority, but also significant opposition.

As the article notes, the DA’s support for the overall bill followed the recent dismissal of former Higher Education Minister Nobuhle Nkabane—a reminder that political developments can shift the balance of support even as departmental votes continue.

What Happens If the Appropriation Bill Fails?

If the National Assembly fails to pass the Appropriation Bill, it must be returned to the Standing Committee on Appropriations for reconsideration. The consequences would be severe:

• Departments can only spend up to 45% of their previous year’s allocation during the first four months of the new financial year.
• After that, spending drops to 10% per month.
• No new programmes or major adjustments to allocations can begin until a new budget is approved, potentially delaying critical public services.

Deputy Minister Masondo warned MPs directly about the stakes:
“Failure to pass the bill could prevent government from accessing funds by October, thereby stalling new projects and service delivery.”

Next Steps: From the National Assembly to the NCOP

If the National Assembly approves the Appropriation Bill, it must then be considered and adopted by the NCOP. The Money Bills Amendment Procedure and Related Matters Act gives Parliament four months from the start of the financial year (ending in July) to finalize the legislation.

The article notes that the NCOP must adopt the bill by 31 July for the process to conclude on time.

Implementation and Oversight After Approval

Once both houses of Parliament have approved the Appropriation Bill and the President has signed it into law, government departments can begin spending their allocated budgets.

However, parliamentary oversight continues:

• Portfolio committees monitor departmental expenditure.
• The Auditor-General audits spending and reports findings to Parliament.
• Corrective action can be taken if mismanagement or underspending is detected.

The Path Forward

The National Assembly’s approval of the Appropriation Bill is a major milestone, but the process is not over yet. Departmental votes, NCOP concurrence, and presidential assent are all still required before the budget can be implemented.

Deputy Minister Masondo summed up the urgency:
“Passing the bill would authorise government to use the allocated funds to provide public services.” Without it, critical projects and service delivery could grind to a halt by October.

The debate and voting patterns reflect an ongoing struggle to balance political disagreements with the need for stability and service delivery. As departmental votes continue, MPs keep the focus on ensuring oversight, transparency, and accountability for how public funds are spent.

The National Assembly has passed the Appropriation Bill, but it must still clear departmental votes, the NCOP, and presidential assent. “This R1.2 trillion… will directly impact the lives of many South Africans,” said Deputy Minister Masondo. Ongoing oversight is vital to ensure the budget delivers real improvements.