Gauteng budget: ‘Our strategy is to grow the economy,’ says Maile amid ‘deep fiscal constraints’

Gauteng Finance MEC Lebogang Maile says the province’s budget will address the challenges residents face amidst fiscal constraints.

Maile presented Gauteng’s R165.8 billion budget for the 2024/2025 financial year on Thursday.

A number of MECs have already presented their respective departments’ budgets for a debate and vote in the provincial legislature.

Maile’s department has been allocated a budget of R816 million.

Gauteng budget

Addressing the media, Maile stated that the province’s budget would prioritise economic recovery, infrastructure development, health and education.

“In a time of deep fiscal constraints, the 2024 provincial annual budget ensures the sustained provision of critical services, while improving the sustainability of public finances to foster growth and development in Gauteng,” he said on Thursday.

“Our budget principles emphasise protecting elevated priorities, curbing budget deficit growth, and ensuring long-term fiscal sustainability, even as we navigate a challenging socio-economic environment.”

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The MEC indicated a total budget of R37.2 billion over the medium-term expenditure framework (MTEF) would be allocated for the infrastructure maintenance and development, which had a “pivotal role in economic growth and investment attraction”.

He revealed that the total provincial revenue collection is expected to increase from R8 billion in 2024/2025 financial year to R8.7 billion in the 2026/2027 financial year.

Maile said the Gauteng provincial legislature would receive R844.9 million. This includes R122.2 million allocated for funding political parties and constituency support.

The MEC highlighted that R26.6 billion was funded from conditional grants and R10.6 billion from the provincial equitable share.

“A need to maintain the existing infrastructure assets to the original condition result in the allocation of R13.8 billion, while R22 billion is availed to expand the capacity of existing infrastructure and provide new infrastructure assets in response to the increasing demand for services,” Maile explained.

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The remaining R1.4 billion was mainly for support required for the delivery of infrastructure.

“Overall, our strategy is to grow the economy so that the economy should be able to be sustainable and to create jobs; because it is not sustainable for government alone to create jobs,” the MEC said.

Former Gauteng Finance MEC, Jacob Mamabolo previously indicated that the Gauteng budget will grow to R171.5 billion in 2025/2026 and to R176.8 billion in 2026/2027.

DA rejects budget

Meanwhile, Maile criticised the DA in Gauteng for rejecting the budget during debates in the legislature.

“It’s unfortunate that their reasons are based on falsehood and propaganda. Any party has got the right to participate or not to in their process – including voting for or against,” he said.

The MEC added: “We know that this other party and the ANC could not agree on working together [in the province]. So, this has nothing to do with the content of the budget, but everything to do with the narrow, selfish interest of this party.”

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In the legislature, Gauteng premier Panyaza Lesufi also took a dig at DA Gauteng leader Solly Msimanga over the provincial party’s stance to reject the proposed budgets.

“The only unfortunate part, member Msimang, is that you have to be a rubberdoll. A rubberdoll must adjust at the right time and right moment.

“A rubberdoll must consult its creator at all times because what I have just said and delivered here it comes from the national lekgotla that was attended by your leadership and out of that national lekgotla, all these resolutions were adopted unanimously.

“You come here and oppose what your national leadership has adopted at a national level, that’s the rubberdoll moment I am speaking about,” the premier said.