Maile says Gauteng budget is less by R51bn

Gauteng MEC for economic development Lebogang Maile says Stats SA overestimated the province’s population in 2022, leading to an inflated budget allocation.

However, in 2024, the revised data showed the actual population figures were lower than previously reported, resulting in a budget cut of R6bn over the next three years. 

Maile delivered Gauteng's R527.2bn over the next three years on Tuesday and reassured the public that despite these reductions, the budget remains funded and without a deficit. 

“In summary, let me put it this way so that everyone can understand the situation we find ourselves in. The term 2024-2029 government budget is less by R51bn. And why? The cuts relate to the equitable share as a result of the performance of the economy,” said Maile. 

He said though they got an increase in the provincial equitable share (PES) amount to R133.9bn in 2025/2026, this was a figure much lower than what they hoped for. 

Maile said national government is working to stabilise debt, which is projected to exceed R400bn, and as a result, is not increasing spending.

This national stance has led to budget cuts amounting to R51bn, the loss of R6bn due to the Stats SA population correction, and an additional R20bn for e-toll payments. 

He said despite these financial constraints, the provincial government remains committed to service delivery. 

“Despite the reduction in our budget, we don’t want to compromise service delivery. We don’t want to retrench anyone. Unlike other provinces, we’re not talking about retrenching staff.

We are making sure that we manage these budget cuts effectively,” he said. 

To balance the budget, Gauteng has leveraged its own revenue sources and is exploring options such as borrowing for infrastructure projects.

Maile said essential services, such as fixing potholes, repairing traffic lights and addressing crime in the inner city, remain priorities under the G20 commitments outlined by premier Panyaza Lesufi. 

“The G20 priorities articulated by the premier will not be compromised, meaning roads must be fixed, traffic lights must function and we must fight crime in the inner city,” he added. 

Maile also addressed concerns about delayed budget approvals at the national level, noting that departments can still function under existing provisions.

“Once the first of April kicks in, departments will spend up to 45% of the previous year’s budget. That will carry us through to September and ensure that critical services continue uninterrupted.

“As leaders, we need to finalise the budget process as soon as possible to avoid prolonged uncertainty. We just hope that they find each other quickly so that we can move forward with full implementation of our plans,” he said. 

Maile said Gauteng’s total budget of more than R500bn is spread across the three-year Medium-Term Expenditure Framework, with R171bn allocated for the 2025/26 financial year.

“This budget is increasing by R2bn from the last financial year. It is a funded budget, and there is no deficit,” he said. 

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