Gauteng's R886 million budget announcement: Democratic Alliance's critical response

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.

Maile indicated that additional resources were made possible through the provincial allocation of unspent funds and revenue over collection from the previous financial year.

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.

siyabonga.sithole@inl.co.za