Post-budget chores

THE annual budget season has ended with parliament’s approval of federal budget 2026-27. Once passed, the activity and debate surrounding the budget’s preparation subsides until the next year — exposing the wide gap between policy pronouncements and actual outcomes. The budget shouldn’t be seen as an annual, stand-alone affair but as an integral component of a medium-term budgetary framework, translating policies and reform priorities into resource allocations and implementation plans. Take the National Tariff Policy. It was formulated after stakeholder consultations, publicly announced and subsequently reflected in the budget. Policy predictability and credible implementation plans help businesses and investors make informed decisions. Preparations for the next budget should start now. Policies for industrial development, integrated energy planning, taxation, education and skills must be finalised with evidence-based analysis and extensive consultation. Once approved, the budget should simply provide the resources required for implementation, thus reducing the disconnect between ambitious policy aims and disappointing outcomes. The 2010 NFC Award, for example, envisaged a tax-to-GDP ratio of 15 per cent; 15 years later, we’re stuck at 10-11pc. Moving from stabilisation towards growth, four main post-budget tasks merit attention: setting clear priorities, boosting oversight and monitoring mechanisms, assigning responsibility for execution and adopting more meaningful performance indicators. An empowered local government is needed to improve service delivery. Citizens judge governments by the quality of education, healthcare, water supply, roads, transport and recreational facilities — services which are delivered effectively only when authority, resour­ces and accountability are devolved to LGs. A constitutional amendment specifying responsibilities and resource allocations for LGs is more practical than proposals for creating new provinces. Setting national priorit