Gauteng Finance MEC Lebogang Maile has presented the province's first Budget of the 7th administration, signalling a commitment to address the myriad challenges facing the region.

Addressing the provincial legislature, Maile underscored the government's determination to cultivate an inclusive and sustainable economy despite prevailing global uncertainties.

"This Budget is an expression of our commitment," Maile stated, as he presented an array of documents, including the Appropriation Bill and the Socio-Economic Review and Outlook, which together outline the state of the provincial economy and the strategic roadmap for growth.

Economic Landscape and Challenges

South Africa's economic environment remains fraught with challenges, including slow growth and persistent issues of inequality, unemployment, and poverty. While projections indicate modest growth, Maile emphasised that significant work remains to tackle these entrenched issues.

"Despite slight improvements, the journey ahead will be difficult, demanding the commitment of the government, private sector, and civil society," he remarked, acknowledging the lingering impacts of the Covid-19 pandemic on the economy.

Strategic Vision for Gauteng

The theme of this year’s budget, "Reaffirming and Strengthening Gauteng’s Role in the Continental Economy" highlights the province's critical position as a key player in the regional economic landscape.

"Gauteng is still the nerve-centre of the regional economy," Maile asserted, while reinforcing that the challenges confronting the province are not insurmountable. The Gauteng Provincial Government plans to implement a five-year budget approach that aligns with the Medium-Term Development Plan, focusing on fiscal discipline and impactful service delivery.

This strategy includes immediate, short-term, and medium-term budget reforms aimed at enhancing the province's resilience.

Addressing Financial Constraints

Acknowledging the province's declining revenue and increasing debt obligations, Maile highlighted the urgent need for fiscal discipline.

"Liquidity pressures are escalating, with net cash balances projected to turn negative by the 2025/26 financial year," he warned, attributing this largely to e-toll debt and health service accruals.

To address these challenges, the provincial government has instituted compulsory baseline reductions across all departments, ensuring that critical service delivery initiatives remain protected from deeper cuts. Maile stressed the importance of exploring alternative revenue sources, such as partnerships with the private sector and donor funding, to bolster the province's fiscal capacity.

Focus on Service Delivery and Efficiency

A primary objective of the budget is to optimise government expenditure to maximise socio-economic impact. Maile noted that compensation for employees constitutes the largest portion of government spending, with efforts to keep it below 60% of overall expenditure.

"We must ensure that staffing decisions are based on efficiency, productivity, and impact," he stated, emphasising the need to transition toward a performance-focused framework in public service delivery.

He stated that this approach is not solely about cutting costs but about ensuring that every rand spent delivers tangible value to the people of Gauteng.

The Gauteng Provincial Treasury said that as Gauteng moves forward, the 2025 budget serves as a blueprint for economic resilience and sustainable growth, offering a strategic framework to navigate the complexities of the current economic landscape while striving to improve the lives of its residents.

Maile announced the budget allocations for the 2025/2026 financial year, providing a quantitative overview of the comprehensive Budget speech, which outlines the qualitative value and priorities for various departments.

Key allocations include Office of the Premier which has been allocated R1.5 billion in 2025/26; R4.6 billion over the Medium-Term Expenditure Framework (MTEF).

Gauteng Provincial Legislature: R1.2 billion in 2025/26, increasing to R3 billion over the MTEF.

Department of Economic Development: R1.6 billion in 2025/26; R4.9 billion in total over the MTEF.

Department of Health: R66 billion in 2025/26; R209.1 billion over the MTEF.

Department of Education: R69.6 billion in 2025/26; R211.2 billion over the MTEF.

Department of Social Development: R5.5 billion in 2025/26; R16.8 billion over the MTEF.

Department of Roads and Transport: R9.7 billion in 2025/26; R28 billion over the MTEF.

thabo.makwakwa@inl.co.za

IOL Politics

Get your news on the go; click here to join the IOL News WhatsApp channel.