How Durban's R70. 9 billion budget aims to transform infrastructure and manage tariff adjustments
The eThekwini Municipality's R70.9 billion proposed 2025 and 2026 Medium Term Revenue and Expenditure Framework (MTREF) budget is being scrutinised by ratepayer associations. The eThekwini Ratepayers Protest Movement said they still object to the proposed tariff increases outlined by the municipality.
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The eThekwini Municipality's R70.9 billion proposed 2025/26 Medium Term Revenue and Expenditure Framework (MTREF) budget is being scrutinised by ratepayer associations.
The MTREF reports will be discussed at a council meeting on Monday for approval. The proposed budget was approved by the Executive Committee (EXCO) on Friday.
The municipality stated that the budget is shaped by extensive public consultations and National Treasury guidelines and that the budget prioritises infrastructure reconstruction, following recent storm disasters.
It said the budget strengthens trading services and the assurance of sustainable service delivery.
The 2025/26 budget comprises a R63.6 billion operating budget and a R7.3 billion capital budget. A significant focus of this MTREF is the reconstruction and rehabilitation of infrastructure damaged by recurring storms, with a 'build back better' approach to mitigate future risks.
The budget also emphasises turnaround strategies for trading services to enhance efficiency and improve the quality of life of residents.
Acknowledging the economic pressures on households, the municipality has revised several proposed tariff increases, following an extensive public participation process held from April 22 to May 17, 2025.
Key adjustments for the 2025/26 financial year include: Assessment Rates: The increase was reduced from 6.5% to 5.9%
Water Tariff: Residential increase reduced from 15% to 13%, and business from 16% to 14%.
Sanitation Tariff: Residential increase reduced from 13% to 11%, and business from 14% to 12%.
Refuse Tariff: Domestic increase reduced from 9.9% to 9%
Electricity Tariff: Set at a 12.72% increase, as guided by the National Energy Regulator of South Africa (NERSA).
The R7.3 billion capital budget will be funded through a combination of grants (R3.24 billion), internal funding (R2.06 billion), and external borrowing (R2 billion).
The budget formulation process included comprehensive public hearings across all regions and engagement with various stakeholders, including business and traditional leaders, as well as opportunities for comment through multiple media platforms.
The municipality stated that public concerns, such as high tariffs, road rehabilitation, housing project progress, and maintenance of social facilities, were taken into consideration, leading to amendments to the proposed budget.
eThekwini Mayor Cyril Xaba said that following a benchmarking engagement on April 23, the National Treasury found the budget to be credible, relevant, and sustainable, while noting areas for improvement in the Municipal Standard Chart of Accounts data.
Asad Gaffar, chairman of the eThekwini Ratepayers Protest Movement, said they still object to the proposed tariff increases outlined by the municipality, in the context of a deepening affordability crisis, increasing resident debt, and ongoing failures in service delivery.
Gaffar said the ERPM finds these proposed increases both indefensible and unsustainable.
The ERPM concerns were affordability crisis, escalating debt levels, service delivery failures, and lack of accountability. It continues to push for oversight of contractor and municipal projects.
'All proposed tariff adjustments must be suspended until there is clear evidence of improved service delivery and proper use of current revenue. The municipality must provide full disclosure on how previous tariffs were allocated, with a detailed plan for how any future increases would be used,' Gaffar said.
Ish Prahladh, from the eThekwini Ratepayers and Residents Association (ERRA), said they have submitted a lengthy list of objections concerning tariff increases from all the ERRA affiliates.
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