Gauteng’s R527bn blueprint: dissecting the provincial budget

“Bold governance and decisive decision-making” were central themes at the Gauteng Post-Budget Breakfast, hosted by the Gauteng Provincial Treasury in collaboration with Business Day and Arena Events, and moderated by seasoned presenter and analyst Zinathi Gquma.

The March 19 event — watch the recording below — provided a critical platform to dissect the province’s financial road map amid economic turbulence and shifting political landscapes.

With Gauteng finance & economic development MEC Lebogang Maile leading the discussion, the session highlighted the province’s commitment to strong leadership in the face of mounting fiscal and service delivery challenges.

SA’s role in a global landscape

In her opening address, Nwabisa Makunga, Arena Holdings’ MD for News and Media, reflected on SA’s prominence on the global stage in 2025, emphasising the country’s role in an evolving economic and political environment.

Makunga underscored the media’s responsibility — particularly that of Arena Holdings’ publications — as striving to “connect people” by delivering critical news that directly impacts the lives of South Africans.

She also pointed to the challenges surrounding the national budget’s passage, noting ongoing disagreements and uncertainty over provincial allocations. Her remarks set the stage for Maile’s budget breakdown, which outlined the province’s fiscal priorities and governance approach.

A R527bn blueprint for Gauteng

Unveiling the province’s three-year budget of R527bn — R171bn of which is allocated for the first year — Maile emphasised the importance of fiscal discipline, particularly in managing debt while ensuring sustained service delivery.

“The solution to debt is not borrowing more, but rather stabilising debt and rebooting the economy,” he asserted.

Maile reassured attendees that despite necessary budgetary adjustments, Gauteng remained committed to service delivery. “We are not trimming the fat but rather doing more with less,” he said.

The province has also capped personnel costs at 60%, ensuring that more resources are directed towards critical sectors such as healthcare, education, and infrastructure.

Addressing financial strain and governance challenges

The conversation turned to Gauteng’s financial burdens, particularly e-tolls and accruals, which continue to strain the province’s budget. Responding to concerns about worst-case scenarios, Maile acknowledged that resolving these legacy issues remained a priority.

“If we were to pay R10bn upfront, we’d be R10bn short on our R33bn goods and services budget,” he explained, emphasising the need for careful financial management.

Maile also addressed governance complexities posed by the Government of National Unity (GNU), acknowledging its challenges while emphasising the constitution’s built-in checks and balances. “The crafters of our constitution didn’t envisage a GNU, and that adds a layer of complexity to governance. However, the strength of our constitution lies in its ability to adapt,” he said.

The private sector question: a push for economic growth

One of the morning’s most critical engagements came when FW de Klerk Foundation representative Ismail Joosub questioned the low budget allocation for private sector economic development. “If economic growth is key to long-term essential services, why is the private sector budget so low?” he challenged.

Maile responded by reframing the budget’s intent: “Economic development is not just housed within one department. When we build roads, we stimulate economic activity. When we build houses, we do the same. This is a facilitative budget,” he argued, citing a R15.1bn investment in township SMEs as a demonstration of the government’s commitment to grassroots economic stimulation.

Long-term investments: from debt to assets

The MEC championed bold, long-term investments that, while initially seen as liabilities, eventually become valuable provincial assets. He cited the Gautrain as a prime example: “Today, we are just a year away from fully owning a R45bn asset. That kind of long-term thinking is what we need now.”

To ensure continuity and accountability in government projects, Maile proposed the establishment of an ombudsman to oversee provincial service providers. This initiative would conduct audits to curb corruption and reduce city debt, particularly where services have been billed but not rendered.

The path forward: bold and decisive governance

With Gauteng targeting a 3% economic growth rate, the MEC emphasised that strategic investments, fiscal discipline and accountability would be key to the province’s resilience.

As SA remains in the global spotlight, Gauteng is not merely preparing to weather economic challenges — it is positioning itself for long-term growth and stability.

The Gauteng Post-Budget Breakfast made one thing clear: navigating a complex economic landscape requires leadership that is both bold and pragmatic. The province’s financial future will be shaped by the decisions made today, ensuring that Gauteng remains a beacon of economic strength in SA.

This article was sponsored by Gauteng Provincial Treasury.