Gauteng's Finance MEC Lebogang Maile has tabled a R527.2 billion budget for the 2025/2026 financial year. The budget aims to enhance service delivery, stimulate economic growth, and create jobs in a region that significantly contributes to South Africa's economy.
Presenting the budget after the 2025 National Budget Speech, Maile emphasised that this financial plan reflects the Gauteng Provincial Government's (GPG) commitment to fostering an inclusive and sustainable economy.
The budget reflected an annual rate of 3%, increasing from R171.5bn in the 2025/26 financial year to R175.1bn in 2026/27 before reaching R180.5 bn in 2027/28.
Maile stated that this year’s budget theme, "Reaffirming and Strengthening Gauteng’s Role in the Continental Economy" underscores the province's ambition to assert its economic significance nationally and regionally.
"The documents we are tabling today provide a comprehensive picture of the state of the provincial economy and finances," Maile stated.
This includes the Appropriation Bill, Estimates of Provincial Revenue and Expenditure, and the Socio-Economic Review and Outlook (SERO).
Maile highlighted the economic context and challenges, acknowledging that South Africa's economy has faced significant hurdles, including slow growth due to structural and logistical constraints.
According to Statistics South Africa, the economy grew by just 0.6% in 2024, with projections indicating only modest improvements in the coming years.
Achieving sustainable growth is imperative for Gauteng, which contributes 35% of the national GDP.
Despite Gauteng's projected growth rate of 1.8% in 2025, Maile acknowledged that more work is needed to address the urgent issues of unemployment and poverty, particularly as liquidity pressures escalate within the province.
"Net cash balances are projected to turn negative by the 2025/2026 financial year," he noted, mainly due to the e-toll debt burden.
On Strategic Initiatives for Recovery and Growth, the provincial treasury said that to navigate these challenges, the Gauteng government has adopted a five-year budget approach aligned with its medium-term development plan.
Maile said this strategy focuses on maintaining fiscal discipline and implementing immediate reforms to enhance service delivery.
“The upcoming Gauteng Investment Conference, scheduled for April 3, 2025, aims to attract R800 billion in investment commitments over three to five years, with an immediate target of R300 billion for the 2025/2026 financial year.
“This investment drive will focus on key growth areas such as innovation, green energy, and infrastructure," Maile said.
The Gauteng Provincial Treasury has committed to identifying inefficiencies and achieving value for money in government spending.
"We are moving beyond traditional cost-containment measures and focusing on larger budget items, such as medical supplies and infrastructure," Maile explained.
This includes introducing new governance measures to enhance transparency and efficiency in the procurement process.
He stated that the budget allocations for various departments reflect these priorities, with significant investments planned for health, education, and economic development.
For example, the Department of Health is set to receive R66 billion, while the Department of Education is allocated R69.6 billion for the upcoming financial year.
IOL