Draft PFMA and MFMA Amendment Bills: National Treasury Calls for Comment

Posted 22 October 2026 Written by Acts Online
Category National Treasury

Brought to you by SA Legal Academy: National Treasury has published two legislative proposals — the draft Public Finance Management & Related Laws Amendment Bill and the draft Local Government: Municipal Finance Management Amendment Bill — inviting public submissions by 29 January 2027.

Published alongside the 2026 Medium Term Budget Policy Statement (MTBPS), the draft Bills introduce statutory revisions to both the Public Finance Management Act, No. 29 of 1999 (PFMA) and the Local Government: Municipal Finance Management Act, No. 56 of 2003 (MFMA). The proposed amendments form part of broader fiscal sustainability interventions designed to reinforce expenditure discipline, reporting transparency, and financial oversight across national, provincial, and local organs of state.

The draft measures focus on substantive regulatory updates across the public finance landscape:

  • Public Finance Management & Related Laws Amendment Bill: Reforming financial management and governance rules across national and provincial departments, constitutional institutions, and public entities, with enhanced Treasury oversight controls.
  • Local Government: Municipal Finance Management Amendment Bill: Strengthening fiscal discipline, revenue management, municipal borrowing regulations, and the statutory framework for financial recovery interventions in distressed municipalities.

Submissions on both draft Bills must be lodged in writing with National Treasury on or before 29 January 2027.

What this means for you, your business, or your clients

  • For yourself: Public sector finance practitioners, compliance officers, and administrative lawyers must review the proposed statutory changes to prepare for upcoming shifts in accounting officer obligations and reporting deadlines.
  • For your business: Audit, legal, and public sector consulting practices should examine the draft provisions to formulate formal submissions by 29 January 2027 and adjust risk assessment frameworks for government client engagements.
  • For your clients: Municipalities, public entities, and commercial vendors contracting with state organs must prepare for stricter financial control thresholds, revised procurement compliance requirements, and tightened municipal debt recovery mechanisms once the legislation is enacted.

Originally published at https://legalacademy.co.za/news/read/fiscal-sustainability-national-treasury-calls-for-input-on-two-draft-bills

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.