Maile tables Gauteng 2025 Medium Term Budget Policy

JOHANNESBURG - On Tuesday, Gauteng MEC of Finance Lebogang Maile tabled the provincial Medium Term Budget Policy Statement and Adjustment Budget.

READ: Key takeaways from the Medium-Term Budget Policy Statement

The MTBPS maps the priorities that will be funded in the next fiscal year.

Maile opened his speech by mentioning issues affecting the province and the country, namely gender-based violence and femicide.

The MEC also spoke about the province hosting the G20 Leaders' Summit.

"Honourable Members, by welcoming the G20 visitors into the province and successfully hosting them, Gauteng has once again demonstrated its capacity and strength for facilitating high quality events."

Maile said, "According to the National Department of Tourism, early data indicates that the province generated more than R1 billion from hosting the G20 Summit."

He named South Africa's credit upgrade in decades.

READ: SA gets first credit upgrade in 20 years

He said, "South Africa recently received its first credit rating upgrade in nearly two decades from S&P Global which raised our foreign currency long-term sovereign credit rating to 'BB' and local currency rating to 'BB+' with a positive outlook."

The MEC discussed the province's financial position, saying, "Turning to Gauteng, the size of the province’s economic output reached R2.4 trillion in 2024."

He announced the Gauteng City Region Economic Growth and Development Plan (GCR EGDP). 

The plan is reportedly intended to drive inclusive economic growth and job creation; improve living conditions; and build a "capable, ethical, and developmental" state.

Maile hailed the Gauteng Investment Conference as a success in April. 

"The conference resulted in global and local companies in both the public and private sectors pledging more than R300 billion in investment commitments," he said.

The MEC announced the Office of the Premier will receive an additional amount of R43.9 million, of which R40.8 million goes towards honouring outstanding claims from the Life Esidimeni Mental Health Users project, and R2.8 million for the filling of critical posts. 

He also announced the following allocations:

  • The Department of Health is allocated R1.1 billion towards offsetting the pressures in the Goods and Services baseline, and a further R90 million towards its infrastructure programme.
  • The Department of Education will receive R507.8 million, of which R200 million is to alleviate pressures in the Compensation of Employees line item, and the balance to scholar transport.
  • The Department of Social Development is allocated R103.9 million, of which R35.5 million is for augmenting the infrastructure programme allocation and the balance towards Goods and Services items exhibiting pressures.
  • The Department of Community Safety is allocated R92.6 million to alleviate pressures facing various items under Goods and Services.
  • The Department of Sport, Arts, Culture and Recreation will receive R10 million, of which R6 million is towards the Summer Games that will be taking place in December 2025. This initiative keeps communities constructively engaged and active in various ways during the festive season. A total of R3 million will be allocated towards Goods and Services, and R1 million for the Compensation of Employees.
  • A total of R400 million is allocated to eGovernment of which R200 million is to address the looming obsolescence of equipment for the Gauteng Provincial Network (GPN), and the balance of R200 million towards offsetting pressing commitments under Goods and Services.
  • The Department of Infrastructure Development is allocated R20 million to alleviate pressures in Goods and Services, and R13 million for the Compensation of Employees.

Maile announced that due to funding constraints, the province will be intensifying efforts to secure alternative resource financing models. 

"We are also placing more focus on consequence management of poorly performing service providers."

The MEC commended the leadership of Rand Water, and Group Chief Executive Officer, Sipho Mosai, for the work that it is doing to ensure that the Gauteng Province addresses its water security challenges.

Maile also announced the finalisation process of drafting the Gauteng Gambling Amendment Bill. 

WATCH: Discussion | Concerns about vulnerable gamblers

He said, "This critical legislative process underscores the province’s commitment to transformation, enhanced revenue collection, and the long-term sustainability and integrity of the gambling industry." 

"This development takes into consideration how the industry has evolved and will go a long way in strengthening the legislative framework in our country and promoting responsible and accountable gambling practices."

READ: Rising gambling addiction sparks calls for tougher regulation

He announced the launch of the pilot phase of TendaSwift.

The provincial e-procurement platform has been developed in partnership with the Gautrain Management Agency to automate and digitise the tender management process in the province.

He also said, "We are currently piloting the automation of both the RFQ and RLS01 processes at the Gauteng Provincial Treasury, the Gauteng Department of Community Safety and the Office of the Premier." 

Maile said a new solution for overpricing in the province is in the works.

The Market Research Price Data Solution is reportedly fully functional and being used in departments including the Office of Premier, Economic Development, Social Development, e-Government and Infrastructure

Maile drew attention to financial maladministration in local government saying, "we are deeply concerned about the challenge of municipalities tabling unfunded budgets. Based on the budget assessments that we conducted in recent months, only Rand West City, the West Rand District Municipality and Merafong City were able to revise their budget funding plans."

Underspending remains an issue in the province. 

READ: Ramaphosa warns municipal underspending is treasonous

Maile reported, "The total under-expenditure for the 2024/25 financial year was R1.922 billion or 99 percent per cent of the allocated budget of R168.7 billion, of which conditional grants amounted to R381.5 million and the equitable share was R1.3 billion." 

"Of significance is that R295.7 million of the unspent conditional grants have been approved for rollover, and only R85.8 million will be surrendered to the National Revenue Fund, whole of the R1.3 billion underspending in equitable share, R211.6 million will be rolled over, the balance not being lost to the province but retained in the Provincial Revenue Fund." 

"As a matter of fact, R888 million was reappropriated to provincial priorities in the Budget that I tabled on 03 June 2025."

You May Also Like