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IOL News
5 days ago
- Business
- IOL News
Gauteng's R886 million budget announcement: Democratic Alliance's critical response
The DA has reacted to the additional R886 secured by Gauteng's MEC for Finance and Economic Development, Lebogang Maile, who has announced his reconfigured budget speech on Tuesday. Image: Itumeleng English / Independent Newspapers The DA in Gauteng has reacted strongly against the additional R886 million tabled by Gauteng MEC for Finance and Economic Development, Lebogang Maile, on Tuesday. Despite Gauteng's financial difficulties, Maile said he would turn things around as the province works to meet all of its goals for service delivery and economic development. On Tuesday, Maile delivered the revised provincial budget following Finance Minister Enoch Godongwana's delivery of his third iteration of the country's Budget vote over a week ago. Godongwana's proposed Budget is also being challenged in court due to the fuel levy increase, which replaced the controversial Value Added Tax increase. Following the previously tabled budget on March 18, which was made up of R171.5 billion on March 18, the revised budget, which was re-tabled at a briefing held at the Gauteng Provincial Legislature for the 2025/26 financial year, amounts to approximately R172.3 billion, representing an increase of R886.6 million. 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. 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To offset the challenges, Maile's budget looked at the pledges recently made by the private sector during the recent Gauteng Investment Conference, which reportedly raised more than R312 billion. "The State of the Province Address expressed a clear appreciation of the binding fiscal constraints in Gauteng and the country at large. This necessitates trade-offs and efficiency-driven spending to sustain the momentum critical to realising our aspiration to alleviate the 13 challenges confronting the province... "We also wish to once again extend sincere gratitude to private sector companies, both local and global, who, by making investment pledges at the recent Gauteng Investment Conference, affirmed their belief that Gauteng is a province worthy of its status as the nerve-centre of the regional and continental economy," Maile stated. His address comes just two weeks after Gauteng Premier, Panyaza Lesufi, during his State of the Province Address, detailed how the provincial government is planning to address 13 major challenges affecting the province for the year ahead. Echoing Lesufi's sentiments, Maile said: "As the provincial government, we will spare no efforts to reach the objectives we have promised to the people of Gauteng, which is a break with inefficient process, a break with corruption and maladministration, a break with fruitless and wasteful expenditure, a break with delayed payments to service providers, and a break with lack of accountability. "We commit to progress, improvement in service delivery, and a definitive change in how we build a provincial economy that grows in the hands of the people of Gauteng." However, DA shadow MEC for Economic Development in the province, Ruhan Robinson, indicated that the additional R886 million is still not enough to meet the needs of the residents. "The R886.6 million added to the Gauteng budget during the re-tabling of the national Budget will not make a significant difference in the quality of life and service delivery for the people living in this province. "It is concerning that no additional funding was allocated to the Gauteng Department of Health. This department is plagued with numerous challenges, ranging from surgeries being cancelled due to budget constraints, which puts patients' lives in danger. Patients continue to suffer at Gauteng hospitals due to the department's failure to replace broken equipment such as heating systems and laundry machines. "Suppliers rendering services and products to Gauteng hospitals are suffering due to non-payment of invoices within 30 days. Despite all these challenges, Premier Panyaza Lesufi has committed to paying e-toll debt," Robinson stated. Robinson added that the decision to pay off the e-toll debt has made it difficult for the province to play around with its financial obligations, adding that the Nas' Ispani programme was another ill-conceived project that would worsen the situation.
IOL News
5 days ago
- Business
- IOL News
Maile tables revised R172. 3bn budget, vowing service delivery and fiscal discipline
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. 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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.'
