Maile tables R179.2bn Gauteng budget, says departments must justify funding

Gauteng Finance and Economic Development MEC, Lebogang Maile, has tabled a R179.2-billion provincial budget, warning that departments will no longer receive funding automatically if projects cannot justify their value.

Presenting the 2026/27 budget at the Gauteng Provincial Legislature on Tuesday, Maile said tight fiscal conditions mean government must prioritise projects that deliver measurable outcomes while cutting wasteful expenditure.

He told the legislature the province cannot afford to fund every proposal and must focus on realistic, deliverable programmes.

Maile said that despite global economic uncertainty and slow national growth, Gauteng remains the country’s economic hub, contributing roughly 33% of South Africa’s GDP.

The provincial economy is expected to grow by about 2.1% this year, slightly above the national projection of 1.6%.

However, the MEC warned that stricter financial controls will now apply to departments seeking funding.

He said projects will only proceed once they meet strict business-case requirements set by the provincial treasury.

The 2026/27 budget forms part of Gauteng’s R549.3-billion Medium-Term Expenditure Framework.

A large portion of the budget has been allocated to frontline services, with the Gauteng Department of Education receiving the largest share at R70.9-billion, while the Department of Health will receive R70.3-billion.

Maile said the allocations are aimed at stabilising essential services, including hospitals, school nutrition programmes and scholar transport.

The MEC also acknowledged that the province’s financial position is being constrained by existing debt commitments, particularly Gauteng’s share of the scrapped Gauteng Freeway Improvement Project (GFIP).

Under an agreement with National Treasury, the national government will cover 70% of the e-toll debt, while Gauteng is responsible for the remaining 30%.

The province made its first repayment of R3.8-billion in September last year and will settle the balance over five annual instalments.

Treasury has also rejected Gauteng’s request for a waiver on a R3.3-billion interest payment linked to the debt, although it approved a request for the province to borrow R4.1-billion for road maintenance related to the project.

Maile said an additional R6.2-billion will have to be paid during the final two years of the Medium-Term Fiscal Framework, further limiting government’s spending flexibility.

He said the province’s budget strategy therefore focuses on maintaining critical public services while enforcing stricter financial discipline across departments.

We tabled the 2026/2027 Budget of the Gauteng Provincial Government under the theme, ‘The audacity of hope: A collective commitment to building a resilient Gauteng’, demonstrating our audacity to hope and our stubborn refusal to accept that internal and external factors are… pic.twitter.com/xFO5RfJHp4

— Lebogang Maile (@LebogangMaile1) March 10, 2026

Written by: Lebohang Ndashe