Gauteng budget faces DA backlash over debt and spending concerns

The DA might vote against Gauteng’s provincial revenue and spending plan of a whopping over R570 billion, the party said yesterday.

The party said it had not been consulted on the province’s budget, “despite the ANC not having won by a majority in the Gauteng”.

While painting a picture of a province faced with a myriad challenges, Gauteng finance and economic development MEC Lebogang Maile yesterday tabled a R527.2 billion 2025-26 budget.

MEC Maile tabled R527.2 billion 2025-26 budget

This is despite conceding to liquidity pressures, declining revenue, mounting debt obligations and an unsustainable wage bill – warning of a net cash balance he said would turn negative during the current financial year, largely due to the E-Toll debt persistent accruals, among biggest financial holes.

In presenting budget allocations, Maile said the Office of the Premier would receive R1.5 billion in the 2025-26 financial year and R4.6 billion over the medium-term expenditure framework (MTEF).

He said this would enable it to lead the Gauteng government in implementing the 2024 to 2029 Gauteng medium-term development plan (GMTDP), “as well as combating crime, boosting economic growth, ensuring energy stability, investing in education and skills development”.

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DA Gauteng shadow MEC for finance Ruhan Robinson: “Should it be found that the budget does not suit service delivery needs or perpetuates the same problems, we will not support it.

“Our votes are not for sale. We will review the budget fairly, ensuring that it is in the best interest of our residents.

“Voting will be based on service delivery needs and whether there are reforms and proper reprioritisation, aimed at better governance.”

Allocations

Allocations include:

• The provincial legislature receiving R1.2 billion – increasing to R3 billion over the MTEF period;
• The department of economic development being granted R1.6 billion “to promote investment in the development of industrial and economic infrastructure – giving priority to the economic development of townships and peri-urban areas”;
• A total of R66 billion given to the department of health and R209.1 billion over the MTEF, “to strengthen the public health system”;
• The department of education receiving R69.6 billion and cumulatively R211.2 billion over the MTEF, “to expand access to quality basic education, early childhood development and improving education outcomes for women, girl, youth and persons with disabilities”;
• Social development granted R5.5 billion and R16.8 billion over the MTEF;
• A total of R551.4 million given to the department of cooperative governance, traditional affairs and urban planning;
• An amount of R5.8 billion and in total R16.6 billion allocated to human settlements;
• Roads and transport receiving R9.7 billion and R28 billion over the MTEF “for the provision of a safe, reliable and affordable integrated transport system”;
• Community safety getting R2.4 billion and R6.8 billion over the MTEF, “to protect, safeguard and secure communities through improved policing”;
• Agriculture and rural development receiving R2 billion, with R647.3 million set aside to respond to the GMTDP;
• Sport, arts, culture and recreation getting R1 billion and R3.1 billion over the MTEF;
• Infrastructure development receiving R3.6 billion and cumulatively R10.8 billion over the MTEF;
• Environment getting R611.4 million and R1.8 billion over the MTEF;
• The department of e-Government receiving R1.5 billion and R4.8 billion over the MTEF; and
• Provincial Treasury granted R787.8 million and cumulatively R2.4 billion over the MTEF.

Robinson said: “The budget mainly focuses on funding the promises made by Premier Panyaza Lesufi during his state of the province address in February.

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“While MEC Maile was at pains to explain that the province is not in a financial crisis, he has admitted that the repayment of a portion of the e-Toll debt, is affecting provincial finances – something the DA has warned about.

“For a long time, the DA in Gauteng has been advocating that fuel levy be used to pay for E-Toll gantries and that the gantries be used to enforce traffic laws.”

An increase in the budget “does not equal better service delivery, unless the current government commits to fixing what is broken first, before embarking on new projects”.

Increase in budget ‘doesn’t equal better service delivery’

“Despite tabling a R171 billion budget for the 2025-26 financial year, an increase of R2 billion from the previous year, the health department has a deficit of R7.3 billion. This department owes service providers R4.3 billion for goods and services.

“The same goes for the department of education, which owes municipalities money for utilities,” said Robinson.

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