E-toll debt, municipal revenue failures and stalled projects tighten grip on Gauteng finances

The Gauteng Provincial Government is facing growing financial pressure as billions of rand in outstanding e-toll debt, weak municipal revenue collection and stalled infrastructure projects place increasing strain on the provincial fiscus.

This emerged during a media briefing by Gauteng Finance MEC, Nkululeko Dunga, on Thursday ahead of the Gauteng Provincial Legislature’s debate and vote on the 2026/27 budget, where he outlined the province’s key fiscal priorities and challenges.

Dunga revealed that Gauteng has already paid more than R13.9 billion towards its e-toll obligations, but approximately R6.17 billion remains outstanding following the June 2026 instalment.

He said servicing the debt continues to place significant pressure on the province’s finances at a time of sluggish economic growth, reduced transfers from national government and increasing demand for public services.

The MEC warned that financial pressures extend beyond the e-toll burden, with municipalities across the province battling declining revenue collection. Many local governments are struggling to collect payments for electricity and water services, while ageing infrastructure, faulty billing systems and rising consumer debt continue to undermine municipal finances.

Dunga said municipalities remain heavily reliant on electricity and water sales as key sources of income, but changing consumer behaviour, including the growing adoption of alternative energy solutions, is reducing these traditional revenue streams.

At the same time, the province is working to address a growing infrastructure backlog. Dunga said government will prioritise completing existing projects before approving new developments, particularly projects that are more than 80% complete.

The province has faced criticism over stalled and abandoned projects, including housing developments, hostels and public facilities that have delayed service delivery and increased costs.

To limit further losses, Dunga said departments have been instructed to identify contractors who abandon projects and strengthen oversight of procurement and project management to improve accountability.

Despite fiscal constraints, road infrastructure remains a priority. Dunga said work is continuing on sections of the N12 near Edenvale and the Gillooly’s Interchange, while maintenance is also planned for the Golden Highway and other key transport routes.

Provincial Treasury says it will continue prioritising revenue collection, the timely payment of service providers, improved procurement systems and public-private partnerships to attract investment. The department has been allocated R788.4 million for the 2026/27 financial year and will also intensify efforts to improve municipal finances and combat corruption across government.

As the Gauteng Provincial Legislature prepares to debate the budget, the province faces the challenge of balancing debt repayments, infrastructure delivery and essential public services within an increasingly constrained fiscal environment.

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EFF Gauteng Provincial Chairperson and MEC for Finance, Commissar @DungaLeko, addressed a media briefing ahead of the tabling of the Gauteng Provincial Treasury Budget for the 2026/27 financial year.

—Every rand will be directed with purpose and accountability.… pic.twitter.com/4vBmyiW51y

— Economic Freedom Fighters (@EFFSouthAfrica) June 25, 2026

Written by: Lebohang Ndashe