Johannesburg's R89 billion budget: Can it meet service demands?
Finance MMC Margaret Arnolds tabled the City's budget In Braamfontein, Johannesburg on Wednesday.
Image: Nokuthula Mbatha Independent Newspapers
Johannesburg Finance MMC Margaret Arnolds unveiled the R89 billion budget for the upcoming financial year, signalling the city's intent to meet rising service demands despite persistent fiscal hurdles.
The budget has increased from R83 billion.
Delivering her speech in Braamfontein on Wednesday morning, Arnolds' budget outlined a city leaning heavily on water and electricity charges, which continue to be Johannesburg's most significant revenue streams.
With property rates and refuse collection fees also increased, the city is turning to its ratepayers to bolster financial stability.
The City of Johannesburg faces two chronic challenges: unreliable revenue collection and infrastructure decay. These realities continue to undermine service delivery in one of Africa's largest metros.
Arnolds clarified that the budget is fully funded. This assurance comes at a critical time, with residents increasingly vocal about service delivery shortfalls, load shedding, and water interruptions.
The revenue surge was largely driven by higher service charges.
Electricity and water tariffs are expected to rise significantly, placing pressure on both households and businesses already grappling with inflation and economic strain.
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'Revenue for 2025/26 reflects a 9.3% increase compared to the previous year. This increase is primarily driven by service charges, which account for the largest share of the City's revenue base,' she said.
According to Arnolds, electricity service charges are budgeted at R25.6 billion, water and wastewater charges will generate approximately R20 billion. Property rates are expected to generate R18.1 billion, and fuel levy allocations from National Treasury will amount to R4.57 billion.
Increased property rates and refuse collection fees further contribute to the city's projected income, she said.
While these moves are necessary to keep the city functioning, they risk deepening inequality in communities already under economic stress.
As Johannesburg enters the new fiscal year, the question remains: can this ambitious budget restore public confidence and deliver real change on the ground?
Arnolds is betting R89 billion that it can.
'The Joburg we want is not separate from the Africa we want - it is the foundation, the test, and the opportunity. Through this budget, Johannesburg is reaffirming its place as a World Class African City,' she said.
kamogelo.moichela@iol.co.za
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