Treasury Tightens Budget for South Africa’s G20 Presidency Amid Fiscal Pressures

As South Africa gears up to host the prestigious G20 Summit in 2025, the National Treasury has rolled out stringent cost-control measures to ensure financial prudence. With a tight fiscal environment, government institutions involved in the summit must prioritize high-impact initiatives while cutting unnecessary expenses.

In line with these directives, the Treasury issued a G20 Sponsorship Framework in November 2024, detailing the processes for acquiring and managing sponsorships. Additionally, G20 Funding Guidelines, released last week, reinforce the need for departments to fund their activities through budget reprioritization. If additional funding is required, departments may apply for supplementary resources via the 2024 Adjusted Estimates of National Expenditure.

Strategic Budget Allocation for G20 Functions

The 2025 Budget will announce provisional allocations for G20-related activities, with a primary focus on essential areas such as:

• Policing: Handled exclusively by the Department of Police to ensure security and public order.
• Communication: Managed through a collaborative effort between multiple agencies, including the Government Communication and Information System (GCIS), National Treasury, and the Presidency.

Supplementary funding will be allocated to these departments to support their G20 responsibilities.

Streamlining Sponsorship and Venue Selection

A G20 Sponsorship Committee has been formed to oversee external fundraising efforts. Government institutions are encouraged to seek sponsorships before utilizing public funds, while ensuring compliance with financial regulations to prevent conflicts of interest.

To further cut costs, the Treasury has mandated that state-owned venues be prioritized for G20 meetings unless deemed unsuitable. Venue selection will be based on affordability, accessibility, and capacity considerations.

Financial Responsibilities and Travel Arrangements

Hosting the G20 comes with significant financial obligations. The South African government will cover:

• Reasonable expenses for foreign ministers and heads of state, including accommodation and official transport.
• Costs in line with host country agreements and G20 protocols.

However, foreign government delegations and international organizations must cover their own travel and accommodation expenses. South African government officials attending G20 events will also be responsible for managing their own travel costs.

South African Airways (SAA) has been designated as the official air travel logistics provider for the summit. However, airport transfers for foreign delegates will not be covered, with costs falling on the respective entities sending them.

Ensuring Fiscal Responsibility in G20 Hosting

The Treasury’s approach highlights South Africa’s commitment to financial discipline while successfully hosting a global event. By prioritizing cost-effective solutions and leveraging sponsorships, the government aims to balance its international commitments with domestic economic realities.

As South Africa takes on this crucial leadership role, ensuring transparent financial management and accountability will be key to the success of the 2025 G20 Summit.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com