Gauteng has R53.9bn to spend till March – Maile rubbishes bankruptcy claims

Gauteng Finance MEC Lebogang Maile has strongly refuted media reports claiming the province faces potential bankruptcy and a R6 billion shortfall by June 2025.

This is despite his previous media briefing where he cautioned that the province could find itself “R6 billion in the red”.

Speaking at a media briefing on Tuesday, Maile explained the decision to address the claims and reports comprehensively.

“We initially thought maybe we should just issue a statement, but it would be like we are running away from accounting,” Maile said.

“These articles merit correction as they are grounded on an erroneous premise that will serve to sow despondency amongst the residents and businesses in the province.”

“While these assertions are not new and have previously been refuted, there is a need to provide a comprehensive response in the public interest, but in line with accountability and transparency,” Maile emphasised.

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Maile reiterates that Gauteng is not facing bankruptcy

According to Maile, the Gauteng provincial government’s overall expenditure stands at R115.2 billion, representing 68% of its R169 billion adjusted budget as of November 2024, leaving R53.9 billion available until March 2025.

Education and health departments drive the majority of spending, accounting for 80% of total expenditure.

The Gauteng Department of Health has spent R46.1 billion, or 69.8% of its R66.17 billion adjusted budget, with major spending focused on Central Hospital Services, District Health Services, and Provincial Hospital Services.

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The department received an additional R600 million during the recent adjusted budget to help offset employee compensation pressures.

Similarly, the Gauteng Department of Education’s expenditure reached R45.9 billion, or 69.5% of its R66.1 billion adjusted budget.

High spending areas include public special schools and early childhood development programs.

The department’s goods and services expenditure as of November 2024 amounts to R5 billion of the adjusted allocation, largely due to previous financial year accruals.

MEDIA BRIEFING | State of Gauteng Finances

The matter of possible bankruptcy, even in the current financial year, should be refuted.

Gauteng’s budget of R169 billion is substantial. Further to this, efforts to improve spending efficiency are already underway, including… pic.twitter.com/SWbMDIBIIy

— Lebogang Maile (@LebogangMaile1) January 7, 2025

Budget adjustments and e-toll resolution

Maile said the overall provincial budget increased by R3.4 billion during the 2024/25 adjustment budget.

This increase comprised function shifts, surrenders, and suspensions of R92.9 million, with R1.2 billion in rollovers and an additional R2.1 billion made available by the province.

“True to our commitment, in September 2024, we made the first instalment amounting to R3.8 billion and this amount consisted of R3.2 billion historical debt and the maintenance portion of R546 million,” Maile confirmed.

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The total e-toll debt obligation of R20.1 billion, including interest, has required significant budget restructuring.

“The obligation to service this debt has necessitated the implementation of a host of reforms and measures to maintain a healthy fiscal environment that will be both sustainable and manageable in the long term,” Maile stated.

ALSO READ: Could Gauteng really go bankrupt in 2025?

Addressing future challenges

While acknowledging pressure in several departments, Maile remained confident about the province’s fiscal management.

“As the Gauteng Provincial Government with a full appreciation of the implications that repaying the debt will have on our financial position, the debt of R20.1 billion — inclusive of interest, is a substantial bite into our already stretched and limited resources,” he explained.

“To meet our obligations to repay this debt, we have had to make very difficult decisions and reorientate our budget priorities, which necessarily will have an impact on the fiscal.”

The Finance MEC emphasised that despite these challenges, the province’s fiscal position remains manageable through careful budget prioritisation and reform implementation.

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