Ministry of Finance Introduces Results‑Based Performance System
The Ministry of Finance announced on Tuesday that it will replace its current, largely subjective employee appraisal process with a results‑based system designed to eliminate bias and improve overall performance outcomes. The initiative was outlined during a briefing to Parliament’s Standing Committee on Finance, where senior officials presented the department’s annual performance and strategic plan for the 2025/26 fiscal year.
Linking Individual Goals to Directorate Targets
Laura Mseme, Principal Director of Strategic Management and Supervision, explained that the new approach ties each employee’s performance metrics directly to the operational plan of their Directorate General. “There is absolute consistency between the results of a chief director’s operational plan performance and the individual performance of the chief directors and deputy directors‑general,” she said.
This alignment creates a “direct link” between organisational achievements and staff assessments, ensuring that progress toward departmental objectives is reflected in every individual’s evaluation. The Principal Directorate’s operational plan will serve as the benchmark for accountability at both the individual and unit levels.
Training and Capacity‑Building Efforts
To complement the performance framework, the National Treasury has launched a management training programme in partnership with Stellenbosch University. The curriculum focuses on:
- Media management
- Senior management and leadership negotiations
- A dedicated stream for women in management
According to Mseme, the programme aims to ensure that Treasury officials are not only technical experts but also effective managers capable of driving the department’s strategic priorities.
Fiscal Performance and Budget Execution
The Ministry’s 2025/26 budget allocation stands at R23 billion (approximately US$1.2 billion). Submission documents to the committee revealed that the Treasury recorded unaudited expenditure of R23 billion, representing 98 % implementation of the approved budget of R23.8 billion. The remaining R800 million consisted mainly of advances paid to suppliers that will only be recognised as expenses once the suppliers meet the expenditure criteria.
In addition, the department highlighted the realization of a primary budget surplus of R48.9 billion for 2025, a figure that underscores the effectiveness of its fiscal consolidation efforts. This surplus provides the National Treasury with added impetus to pursue further gains in public financial management.
Strategic Pillars Guiding the Ministry’s Work
Finance Minister Enoch Godongwana reiterated that the Ministry’s actions continue to be anchored on four core pillars:
- Maintaining macroeconomic stability
- Implementing structural reforms
- Investing in growth‑enhancing infrastructure
- Building state capacity
He emphasized that the annual performance plan reflects a commitment to prudent fiscal management, transparent governance, and the effective use of public resources—elements deemed essential for supporting higher economic growth, job creation, and improved living standards for all South Africans.
Conclusion
The introduction of a results‑based performance system marks a significant shift toward objective, data‑driven evaluation within the Ministry of Finance. By aligning individual performance with directorate plans, investing in targeted management training, and maintaining strong fiscal discipline, the department aims to enhance accountability and deliver better outcomes for South Africa’s public finances. Stakeholders will be watching closely as the system is rolled out and its impact on service delivery becomes evident.
