logo
Maile tables revised R172. 3bn budget, vowing service delivery and fiscal discipline

Maile tables revised R172. 3bn budget, vowing service delivery and fiscal discipline

IOL News03-06-2025
Gauteng MEC for finance and economic development re-tables budget for 2025/2026, focusing on service delivery and economic growth
Image: Gauteng Legislature
The Gauteng Provincial Government Finance MEC Lebogang Maile has re-tabled the province's increased 2025/2026 Budget, emphasising service delivery, fiscal discipline and inclusive growth in the country's economic hub.
The revised budget now amounts to R172.3 billion — an R886.6 million increase from the initially proposed R171.5 billion.
Maile presented the revised Budget to the Gauteng Provincial Legislature and explained that the additional funds were made possible through the provincial allocation of unspent resources and revenue over-collections from the previous financial year.
'These resources enable us to better respond to the urgent needs of our communities and to reinforce our commitment to service delivery,' he stated.
He further said that the re-tabling was a necessary response to the extraordinary delays and disagreements at the national level, where the postponement and subsequent amendments to the national budget caused ripple effects on provincial planning.
'The developments at the national level, including the postponement and withdrawal of the Division of Revenue Bill, compelled us to withdraw our initial provincial Budget and re-table it within the legal framework provided by the Public Finance Management Act,' Maile said.
According to Maile, the priorities outlined in the State of the Province Address (SOPA) are comprehensively funded in this 2025 Medium-Term Expenditure Framework (MTEF) Budget within and across all budget votes.
Maile said that this deliberate alignment ensures that the government's strategic objectives - such as infrastructure development, social services, safety, and economic growth - are adequately resourced to deliver tangible and measurable impacts for Gauteng residents.
He expressed confidence that these investments will translate into real change, improving the lives of the people across the province and reaffirmed the commitment made during the Medium-Term Budget Policy Statement (MTBPS) tabling in November last year.
'Fiscal discipline is non-negotiable. We will continue prioritizing efficiency gains and making strategic trade-offs to fund our government's priorities. Managing our finances responsibly is fundamental to building a resilient Gauteng that can sustain growth and development, even in difficult economic times.'
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Maile stressed that fiscal discipline requires provincial and municipal governments to uphold fiscal positions that are aligned with macroeconomic stability.
He argued that this is essential for maintaining investor confidence and economic resilience and for ensuring equitable and sustainable service delivery across all communities.
He also highlighted that exploring alternative funding sources is crucial for long-term fiscal sustainability.
'Provincial departments and entities are actively investigating innovative financing mechanisms—such as public-private partnerships, donor funding, and blended finance models—to supplement constrained revenue streams.
'These efforts will enable the government to expand its investment capacity while maintaining prudent financial management,' said Maile.
Prioritising Critical Sectors with Targeted Allocations
The allocations outlined in the budget are focused on addressing the most urgent and impactful needs:
The Gauteng Department of Human Settlements was allocated R332 million to improve sanitation in informal settlements (R232 million) and to secure land and structures against illegal occupations (R100 million), directly tackling the issues of land invasion and service delivery gaps highlighted in SOPA.
The Department of Roads and Transport will receive R314.9 million, with R150 million targeted at 54 priority roads across the five economic corridors and R115 million for repairing traffic lights and streetlights, improving mobility and safety.
Maile announced that the Departments of Agriculture, Rural Development, and Environment have been allocated R23.8 million and R18 million, respectively, to build capacity and implement environmental initiatives, including the clean and green campaign aimed at improving urban environments and public spaces.
Other critical sectors include health, education, safety, sports, arts, ICT, and infrastructure. The budget ranges from R50 million for school upgrades to R1.5 billion for ICT expansion and R3.6 billion for infrastructure development.
He said these investments are designed to accelerate service delivery, foster economic growth, and improve the quality of life for all residents.
The Budget also prioritised social programs, with R5.4 billion allocated to Social Development to address urban poverty, homelessness, and skills development.
The Department of Community Safety will receive R2.3 billion to enhance policing, community safety efforts, and law enforcement visibility, including deploying Gauteng Traffic Wardens to restore law and order.
Maile announced that R1 billion is being funded for arts, culture, and sports, which supports community engagement and social cohesion and hosts major national and international events.
In digital transformation, Maile said R1.5 billion is allocated to expand ICT connectivity, including Wi-Fi hotspots and CCTV installations in townships, contributing to safer and more connected communities.
Maile reaffirmed that maintaining fiscal discipline remains an uncompromising priority.
He said the government is committed to managing expenditures efficiently, identifying savings, and making strategic trade-offs to fund priority programs.
'Our approach is to ensure that every rand spent delivers maximum value to our people,' he said.
'This requires us to be disciplined, innovative, and unwavering in our commitment to responsible governance.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

National Dialogue's big question of cost shrouded in mystery
National Dialogue's big question of cost shrouded in mystery

Daily Maverick

time3 hours ago

  • Daily Maverick

National Dialogue's big question of cost shrouded in mystery

How much will the National Dialogue cost? That's the (multi) million-rand question. The National Convention – the preclude to the National Dialogue – is supposed to be the launchpad for months of citizen-led talks about South Africa's future. However, it will be held later this week amid big questions over budget and readiness, and without the buy-in of several foundations that were behind the initial process. Last Friday, legacy foundations including the Thabo Mbeki Foundation, Steve Biko Foundation, Desmond and Leah Tutu Foundation and four others withdrew from the gathering, citing concerns over government control, the continued absence of a confirmed budget, and a rush to stage the National Convention on 15 and 16 August. 'The continued absence of a confirmed, approved budget allocation and a last-minute commitment of initial funds has made sound preparation impossible. This raises real risks of a poorly organised and unaccountable process. 'The push to proceed has created pressure to engage in emergency procurement, which may violate the Public Finance Management Act (PFMA),' the foundations said in a statement on Friday, 8 August. They said the withdrawal of their participation in the Preparatory Task Team (PTT) – which comprised the foundations, NGOs, community groups and representatives from the Presidency – and the first National Convention, did not mean a withdrawal from the National Dialogue project itself. While the Presidency has insisted that costs are being managed and will be largely covered by in-kind contributions, it has not revealed a final budget for the National Dialogue. This is because a budget for the National Dialogue will be finalised only after the National Convention, according to Presidency spokesperson Vincent Magwenya. 'The total budget for the National Dialogue will be developed as the structure and form of the community dialogues are finalised by the Convention, and will depend on in-kind contributions, donations and other resources that can be mobilised,' a statement from Magwenya said on Sunday, 10 August. In response to questions, Magwenya told Daily Maverick: '[The] total budget will be confirmed after the finalisation of the full roll-out process of the Dialogue by the National Convention.' Cost confusion Questions surrounding the total cost of the National Dialogue have been made ever more complicated by a recent report in the Sunday Times, which suggested a clash was taking place behind the scenes between President Cyril Ramaphosa and former president Thabo Mbeki, over arrangements for the National Dialogue. In its report, the Sunday Times cited government insiders who claimed that the foundations had proposed an initial R853-million budget for the National Dialogue, which they then 'begrudgingly' lowered to R700-million, after Ramaphosa refused their request. This allegedly then went down further to a budget of R452-million, the publication reported. The Sunday Times article seems to suggest that the total budget for the National Dialogue has been finalised at R452-million. However, this is untrue, with the Presidency confirming the budget hasn't been finalised. In addition, the foundations dispute the claim that they proposed an R853-million budget. Magwenya didn't respond to questions on the matter. CEO of the Steve Biko Foundation Nkosinathi Biko, who was the chairperson of the PTT, and CEO of the Desmond and Leah Tutu Foundation Janet Jobson told Daily Maverick that the figure of R853-million reported by the Sunday Times was, in fact, never put forward among the PTT for consideration. 'I have never heard of a figure of R853-million, and I was chair of that PTT,' said Biko. Jobson told Daily Maverick that the PTT had proposed an initial R76-million for a National Dialogue that was first conceptualised as a digital platform. 'That was for quite a different vision of the Dialogue National; largely as a digital platform and through the process of engaging citizens through technology. But, in discussions, it emerged that we felt it necessary for it to be a face-to-face process, and one that reached every corner of the country,' said Jobson. 'After that, we started the budgeting process for a much more extensive initiative,' she said. The PTT workshopped scenarios and approaches for a face-to-face dialogue, and a request was made to cost the roll-out of that model, which came back at R700-million, according to Jobson. However, she said, R700-million was never a figure considered for approval. A figure of about R450-million was also a proposed scenario that was discussed among the PTT, but again it was never approved, according to Jobson. 'Transparent and accountable' In their joint statement, the foundations called for the National Dialogue to be 'transparent and accountable, with no space for corruption or mismanagement of funds in its process.' Chairperson of Parliament's Standing Committee on Appropriations Mmusi Maimane, in a statement on Monday, expressed 'serious concerns' over the funding and implementation of the National Dialogue, saying he would seek clarification on the funding from the National Treasury. 'While the National Dialogue is vital for our democracy, we are deeply troubled by the absence of a concrete funding strategy. There is no dedicated allocation in the national budget and, in an already constrained fiscal environment, we cannot afford to divert resources from other critical priorities,' said Maimane. He said the funding model had to be sustainable and accountable, and could not place an added burden on taxpayers. Maimane said the committee had written to the National Treasury requesting clarity on the budget vote funding the National Dialogue, and an impact assessment report on programmes that might be affected by diverted funds. In Sunday's statement, Magwenya said that all budgetary processes relating to the National Convention were consistent with the PFMA. He said the costs of the convention were being funded from the existing budgets of the National Economic Development and Labour Council (Nedlac), and the Presidency for secretariat support, communications and logistics. 'The provisions in the Appropriation Act and the PFMA will be used to reimburse the Department of Employment and Labour, and Nedlac, in the Adjustments Budget later this year. All procurement and management of public funds will adhere to the PFMA and applicable Treasury regulations. All funds will be accounted for through the normal public finance mechanisms,' said Magwenya. In response to questions from Daily Maverick about the concerns over transparency and accountability, Magwenya said: 'The National Convention could not be pre-empted. Any finalised budget prior to the National Convention would have been speculative. The National Treasury has made provisions for the National Dialogue, which will be finalised after the Convention. In-kind support or sponsorship has been secured for the Convention and more support will be secured for the Dialogue roll-out. 'Any talk of an absence of a funding strategy is devoid of reality and truth. Public expenditures are reported in Parliament and in budgetary processes. I don't understand what informs concerns about transparency,' he said. DM

Parliament seeks clarity on funding of the National Dialogue
Parliament seeks clarity on funding of the National Dialogue

IOL News

time12 hours ago

  • IOL News

Parliament seeks clarity on funding of the National Dialogue

Mmusi Maimane, chairperson of Standing Committee on Appropriations, said the committee has formally written to National Treasury requesting clarity on the budget vote funding the National Dialogue and an impact assessment report on programmes that may be affected by diverted funds. Image: Picture: Timothy Bernard / Independent Newspapers Chairperson of the Appropriations Committee Mmusi Maimane has written to the National Treasury to enquire about the funding for the National Dialogue, which has no direct allocation in the recently approved Budget. Maimane said he was concerned how the National Dialogue will be funded and implemented. 'While the National Dialogue is vital for our democracy, we are deeply troubled by the absence of a concrete funding strategy. There is no dedicated allocation in the national budget and, in an already constrained fiscal environment, we cannot afford to divert resources from other critical priorities,' he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Maimane also said any funding model must be sustainable, accountable and must not place additional burdens on taxpayers. His statement comes as President Cyril Ramaphosa's spokesperson Vincent Magwenya said all budgetary processes regarding the National Convention were consistent with the Public Finance Management Act. The costs of the first two-day convention this weekend will be funded from the budgets of National Economic Development and Labour Council (Nedlac) and the Presidency. Unisa is hosting the first National Convention and will provide associated goods and services free of charge. 'The Inter-Ministerial Committee, which is chaired by Deputy President Paul Mashatile and comprises all relevant government departments to coordinate government's contribution towards the National Dialogue, has been working to mobilise resources for the convention and manage costs,' said Magwenya. He also said all procurement and management of public funds will adhere to the Public Finance Management Act and applicable Treasury Regulations. 'All funds will be accounted for through the normal public finance mechanisms,' he said. Responding to parliamentary questions from DA chief whip George Michalakis, Mashatile said the Inter-Ministerial Committee has tasked the National Treasury, together with other departments such as The Presidency; Justice and Constitutional Development; Employment and Labour; and Sport, Arts and Culture, to review the estimated budget. 'The budget of the National Convention and the National Dialogue has not yet been finalised,' he said. The initial R700m budget for the National Dialogue has been widely criticised. Some reports have suggested that government planned to contribute 60% of the projected R450m cost of the National Dialogue. Maimane said the committee has formally written to National Treasury requesting clarity on the budget vote funding the National Dialogue and an impact assessment report on programmes that may be affected by diverted funds. The committee wants a detailed plan to mitigate any negative consequences on service delivery as well as a comprehensive report on a list of programmes that will be affected by the funding of the National Dialogue. He said South Africans deserved more transparency and fiscal responsibility. 'Without these, the National Dialogue risks becoming another missed opportunity.' Maimane said it was also troubling to learn that important voices were stepping away from the process. 'If the Dialogue proceeds, how can South Africans trust that it will deliver meaningful, inclusive outcomes? We need assurance that all perspectives especially those most affected will be heard.'

‘Military veterans' born in the 90s banked R3.5 million in business support
‘Military veterans' born in the 90s banked R3.5 million in business support

The Citizen

timea day ago

  • The Citizen

‘Military veterans' born in the 90s banked R3.5 million in business support

The Gauteng provincial government had a 3% budgeted target for military veteran support programmes in the 2024-25 financial year. Funds earmarked for businesses owned by military veterans have been given to companies headed by directors who had not yet started school when the new South Africa was born. A budget allocation meant for military veterans exists within the Gauteng government, but the opposition has called the past two financial years' payments 'questionable'. The Department of Sport, Art, Culture and Recreation (SACR) recently confirmed its expenditure on military veteran support programmes via a written response to questions posed in the provincial legislature. Eligibility questioned SACR MEC Matome Chiloane signed off on a response that listed the payments made to companies owned by military veterans for services to the government, including the ID numbers of the relevant directors. The Democratic Alliance noted the definition of military veteran listed in the Military Veterans Act is someone who served in a military organisation during apartheid or in the army before 27 April 1994. 'This excludes individuals born after this period or who were still children during the years of military service eligibility,' stated the DA. The Gauteng government gave R8.5 million to companies owned by military veterans in the 2023-24 and 2024-25 financial years, but at least R3.5 million of that went to directors born in or later than 1990. One payment of R147 700 was made to a company for language services whose director was born in 1995, while R45 000 was spent on a transformation programme provided by a company whose owner was born in 1992. The department gave R966 000 to a company for tablets, R405 000 to another for eventing services, and R486 000 to a third for a sports competition, with these owners being born in 1990, 1991 and 1996, respectively. Five other payments of a combined R1.5 million were made to directors born between 1990 and 1995 for logistics and capacity building, among others. Socio-economic support Finance MEC Lebogang Maile's budget speech reaffirmed the provincial government's commitment to assisting selected groups with business funding. 'We will continue to support provincial socio-economic transformation initiatives by monitoring the 60% spend on Gauteng township-based suppliers; particularly SMMEs owned by Africans, women, people with disabilities, the youth and military veterans,' stated Maile in July. Chiloane's response clarified the payments were not for contracts, but part of a larger support programme. 'The department supports these companies through requests for quotations in line with the annual performance plans indicators, that is, percentage spent on military [being] 3%,' stated Chiloane's response. Targeted spend on military veterans was 3% in the last financial year, up from 1% in the 2023-24 financial year. 'The department further notes the improvement in the 2024-25 financial year on the military veteran support,' concluded Chiloane. 'Far too young' DA Shadow SACR MEC Kingsol Chabalala accused the department of neglecting job creation initiatives, stating some beneficiaries were 'far too young to be categorised as military veterans'. Chabalala said the DA will urge Chiloane to investigate the payments 'transparently and without bias', to ensure the funds reach their intended targets. 'This reeks of a blatant abuse of procurement processes to secure lucrative contracts. 'It stands as a glaring example of how people in this department will stop at nothing, even exploiting the legacy of veterans, to divert public resources for personal enrichment,' Chabalala concluded. NOW READ: R34.2 billion of defence and military budget to go to salaries

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store