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KwaZulu-Natal receives the largest budget of all the provinces in terms of equitable share.
The province will receive R78 billion for 2014/15, followed by Gauteng with R68.6bn and the Eastern Cape with R52bn.
Gordhan added that Education will get the biggest slice of this year's budgetary pie at R253.8 billion.
The money has been set aside for the department of basic education, higher education and training, and arts and culture.
Gordhan said South Africa's economy has continued to grow, but more slowly than projected a year ago, with growth of 2.7% expected this year.
