Gauteng Budget 2025/26 Prioritises Fiscal Discipline, Good Governance

The Gauteng Provincial Government has unveiled its revised budget for the 2025/26 financial year, amounting to R172.3 billion, marking an increase of R886.6 million from the budget tabled earlier this year. The updated budget reflects the province’s ongoing commitment to restoring fiscal discipline, strengthening governance systems, and enhancing transparency in public financial management.

Gauteng MEC for Finance and Economic Development, Lebogang Maile, presented the revised provincial budget before the Gauteng Provincial Legislature on Tuesday, laying out a vision of accountability, transformation, and service delivery improvement through better financial controls and digitised processes.

Municipal Fiscal Health a Major Concern

In his address, MEC Maile raised alarms about the financial fragility of municipalities across Gauteng, revealing that only four municipalities had tabled funded budgets, while the rest remain unfunded—a scenario he warned undermines budget credibility and macroeconomic stability.

“We have stated repeatedly that fiscal discipline requires municipalities to maintain positions that align with macroeconomic stability and long-term growth. Budgets must be both realistic and executable,” said Maile.

To address these issues, the Gauteng Provincial Treasury is stepping in to assess and support municipalities in crafting budgets that are not only technically sound but also fully funded. This includes budget assessments during the drafting phase and the final adoption process.

In addition, municipalities are being supported in conducting cost-reflective tariff reviews to ensure revenue collected is adequate to cover the true costs of delivering services like electricity, water, and waste management.

Tackling Governance and Procurement Inefficiencies

A significant portion of Maile’s speech was devoted to addressing chronic inefficiencies in Supply Chain Management (SCM)—which he referred to as the “most critical component” of service delivery in the province. Issues highlighted included:

• Irregular expenditure

• Incomplete infrastructure projects

• Procurement litigation

• High accrual levels

• Late payments to suppliers, especially SMMEs

Maile noted that under-capacitation in project and contract management has been a root cause of many SCM failures. While many SCM personnel possess relevant graduate qualifications, a disproportionate number are involved in low-skill administrative tasks like managing Request for Quotations (RFQs). This skills mismatch, he said, is now being corrected through a personnel recruitment and placement strategy aimed at aligning human capital with critical operational needs.

Digitisation as a Modernisation Strategy

To address systemic inefficiencies and reduce opportunities for corruption, the Gauteng government is fast-tracking digitisation of its procurement systems. All tenders will soon be submitted and evaluated electronically, using modern platforms to ensure process transparency and data integrity.

“Digitisation is not optional—it’s essential,” Maile stated. “We are working closely with the Gautrain Management Agency to adopt their advanced procurement solution, which has already proven effective.”

This transition is expected to reduce procurement delays, improve audit trails, and ensure real-time monitoring of procurement processes.

Transparency and Supplier Confidence

Another major thrust of Maile’s speech was around rebuilding trust between government and service providers, particularly SMMEs and township-based businesses. The provincial government aims to pay:

• General suppliers within 30 days

• SMMEs within 15 days

• Township-based suppliers within 10 days

The aim, according to Maile, is to eliminate the culture of "incentivised" participation, where businesses are compelled to offer bribes or informal payments to secure contracts or receive payments.

“No business in Gauteng should pay a cent to access economic opportunities. The process must be reliable, transparent, and free from human interference,” he declared.

To support transparency, the Provincial Treasury is developing a Market Research Price Data Solution, which will allow departments to benchmark pricing against standard market rates—thus preventing overpricing and inflated quotations.

Toward a New Public Financial Management Era

Maile emphasised that the new budget is not just about rands and cents—it represents a strategic framework to reengineer Gauteng’s economy. The measures being implemented are aimed at:

• Eradicating corruption

• Empowering accounting officers with real-time data

• Stimulating inclusive growth and transformation

• Enhancing service delivery efficiency

The provincial administration is also looking into improving infrastructure project completion rates, aligning procurement practices with socio-economic development goals, and ensuring that funding is directed to priority sectors such as education, healthcare, housing, and job creation.

“We are entering an era where budget credibility, financial integrity, and governance reform are no longer aspirations—they are imperatives,” Maile concluded.

Provincial Budget Snapshot for 2025/26

• Total Budget: R172.3 billion

• Increase Over Previous Allocation: R886.6 million

• Focus Areas: Fiscal discipline, SCM reform, digitisation, municipal support

• Key Instruments: Market pricing tool, advanced procurement platform, personnel strategy

As Gauteng continues to position itself as South Africa’s economic engine, the 2025/26 budget signals a firm stance on responsible governance, fiscal transparency, and economic transformation that is inclusive and sustainable.