Gauteng MEC for Finance and Economic Development Lebogang Maile has tabled his budget proposal on Tuesday.
Image: Itumeleng English / Independent Newspapers
Gauteng Provincial MEC for Finance and Economic Development Lebogang Maile has tabled a R527 billion budget which promises to give the province its much-needed infrastructure, service delivery, and job creation boost.
Maile stressed the importance of rebuilding the province's economic outlook through the use of alternative funding models, accelerated completion of infrastructure programmes, enhanced revenue collection, and new revenue sources.
"To facilitate investment in the province, we will host the first Gauteng Investment Conference on the 3rd of April 2025. Our aim is to attract R800 billion in investment commitments into the province over a period of three to five years... The event will also be an important platform to engage with the public and private sector investors on policy measures to bolster energy security, revive industrial competitiveness, and leverage on private-sector investment to fast-track economic recovery and growth in the province," he stated.
Furthermore, he said value for money and efficiencies in government spending were needed to turn the province's economy around, adding that the expansion of the Gautrain service is key to the province's economic success.
Maile further indicated that by the end of the concession term in March 2026, the Gautrain system will be a fully paid-up asset of the province. "By the end of the concession term, the system will be a fully paid up asset of the province estimated at R45 billion, and post 2026, it will be procured via a public-private partnership," he added.
Despite various reports suggesting that Gauteng is on the brink of economic collapse, Maile revealed that this is not the case.
"The Explanatory Mandatory Bill, Estimates of Provincial Revenue and Expenditure Bill, and the Socio-economic Review and Outlook documents, collectively provide a comprehensive picture of the state of the provincial economy and finances, and the roadmap that we are using to alter this state in a quest to build an inclusive and sustainable economy," he said.
Early this year, Maile was forced to hold a media briefing explaining the state of the province's finances after the DA accused the province of being on the brink of economic collapse and bankruptcy.
In that media briefing in January, Maile outlined the province's finances, saying Gauteng’s budget of R169bn was “substantial” but that its impact depended on how wisely it was spent.
"South Africa continues to experience a weak economic performance due to structural challenges and logistical constraints, as a result, Statistics SA has indicated that the country's economy grew by just 0.6% in 2024. The National Treasury projects that the economy will grow by 1.7% in 2025 and 2026, respectively.
"These growth figures are concerning in light of the empirical research by both the National Treasury and the World Bank, which posits that to address the country's economic challenges and achieve sustainable growth, the South African economy needs to grow by 5% or higher annually, requiring a combination of policies focused on infrastructure, investment and skills development. For a province like Gauteng, which is home to the biggest population of the total population figures, this growth rate is imperative," he said.
On the issue of road infrastructure in the province, the MEC said the Department of Roads and Transport will receive R9.7 billion for the 2025/26 financial year, adding that the money will be used to fix traffic lights and potholes, among other things.
siyabonga.sithole@inl.co.za
