While considerable progress has been registered in the transformation of the South African public service, financial management remains the focal point of contention. South Africa is at a dynamic phase in its history and development. It is imperative for the government to apply sound financial management principles and ensure proper public administration in rendering services to the public and enforce the best accounting standards in terms of the Generally Accepted Accounting Practice. A compendium of policies has been enacted with a view of laying the foundation for the Financial and Fiscal Framework. This article documents the current status of public financial management in South Africa, using the 2007 Medium-Term Budget Policy Statement as a central basis.