Budget planning and expenditure control in public universities: A case study of Gauteng, South Africa

Abstract

Efficient budget planning and expenditure control are critical to the financial sustainability of public universities in South Africa, particularly amid increasing funding pressures following the COVID-19 pandemic. This study examines budget development processes, expenditure management practices, and institutional responses to a changing funding environment in public universities in Gauteng. Using a mixed-methods approach, the study combines a review of relevant literature with empirical data collected through online questionnaires completed by senior finance officers, departmental heads, and management personnel. The analysis focuses on budgeting models, expenditure control mechanisms, internal control practices, and the use of financial management systems. The findings indicate that incremental budgeting remains the most widely used approach, with institutions largely relying on prior-year budgets adjusted for inflation. However, this model is increasingly viewed as insufficient for addressing contemporary financial challenges, leading to growing interest in more flexible alternatives such as performance-based and activity-based budgeting. While financial systems such as ITS and SAP are commonly employed, persistent gaps exist in internal controls, cost tracking, and the allocation of research and operational expenditures. Furthermore, inconsistencies were identified in the management of technology stations and student housing, particularly in relation to income generation and capital expenditure planning. Thus, the study concludes that existing budgeting and expenditure control practices lack the responsiveness required in a dynamic funding environment. It therefore recommends the adoption of more adaptive budgeting frameworks, stronger internal control systems, improved transparency and accountability, and enhanced capacity development for departmental budget planners to support long-term financial sustainability.