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MEC MAILE ADDS R 3.3 BILLION TO GAUTENG BUDGET TO IMPROVE SERVICE DELIVERY
CHANON LECODEY MERRICKS ONLINE_EDITOR©®™
Two weeks ago, the
Minister of Finance, Enoch Godongwana emphasised during his
MTBPS speech that, and I quote: “We are choosing growth, stability, and reform”. Today, as we table the provincial MTBPS, I would like to affirm that as the
Gauteng Provincial Government, we remain singularly focused on protecting social services, supporting inclusive growth, and ensuring that every Rand derives tangible value and benefits to the people of Gauteng. This event takes place as the country commemorates the
16 Days of Activism for No Violence Against Women and Children campaign. We therefore applaud the decision by
President Cyril Ramaphosa to declare
Gender Based Violence a national disaster. GBV is not only a social, political and public health emergency, it is also an economic crisis with significant direct and indirect costs to individuals, communities, businesses, and national economies.
This MTBPS also takes place a week after South Africa hosted a successful
G20 Leaders’ Summit. According to the
National Department of Tourism, early data indicates that this province generated more than R1 billion from hosting the G20 Summit. We welcome this significant injection of funds into the fiscus, coming at a time when resource constraints continue to pose a challenge to public services.
ECONOMIC REVIEW AND OUTLOOK Turning to the economic outlook, the South African Reserve Bank (SARB) has forecasted national growth of 1.3 per cent in 2025, 1.4 per cent in 2026, and 1.9 per cent in 2027 and 2028. The size of our province’s economic output reached R2.4 trillion in 2024. This means that the province remains by far the economic hub of South Africa, responsible for R33 out of every R100 the country’s economy produces.
Gauteng’s economy is larger than the economies of
KwaZulu-Natal and the
Western Cape combined. However, we understand that the economy of this province must record far higher growth rates to lift South Africa’s GDP, accelerate the creation of much needed jobs and reduce poverty.
It is for this reason that the provincial executive council recently approved the Gauteng City Region Economic Growth and Development Plan (GCR EGDP). The GCR EGDP is intended to contribute to the three strategic priorities of the
7th Administration, namely: inclusive economic growth and job creation; improved living conditions and enhanced health and well-being; and a capable, ethical, and developmental state. We are confident that the effective implementation of this strategy will set Gauteng on a positive economic growth path and create much needed jobs, amid global headwinds and domestic economic challenges.
REVENUE STRATEGY AND FISCAL OUTLOOK
As we have said before, we are operating in a difficult environment in which we must find ways to strike a balance between the growing demand for public services and the fiscally constrained economy. We are addressing Gauteng’s fiscal trajectory through a combination of active debt management strategies and spending restraint. As part of our plans to ensure long-term fiscal sustainability, we have developed the new
GPG-Wide Revenue Enhancement Strategy. This strategy was approved by the provincial executive council in October 2025, and it will enable the provincial government to increase own revenue collection which will be used towards resourcing our priorities.
DIGITISING PROCESSES TO IMPROVE EFFICIENCIES
When I re-tabled the 2025/26 Main Budget on the 3rd of June 2025, I emphasised our commitment to enhancing our internal processes to achieve operational efficiencies, and fight fraud and corruption in government. Today, we are launching the pilot phase of
TendaSwift - Gauteng’s new e-procurement platform that has been developed in partnership with the
Gautrain Management Agency to automate and digitise the entire tender management process in the province. TendaSwift, which is available on the e-tender website of the Gauteng Provincial Treasury, is a modern e-procurement platform designed to streamline processes, strengthen oversight, and provide the functionality needed for effective public procurement in the digital era. One tender from Provincial Treasury has been advertised on TendaSwift, while another, from the Gauteng Growth and Development Agency, will be advertised on the 5th of December 2025.
This demonstrates our commitment to transparency, open competition, and a modernised procurement system. For many years, government procurement systems relied heavily on manual, paperbased submissions that created inefficiencies, delays, and opportunities for malpractice. Thus, this is not merely a technological upgrade. It is a strategic intervention aimed at ensuring that every supplier, regardless of size or location, has equal access to opportunities. In partnership with National Treasury and the Department of e-Government, we are automating the paper-based Request for Quotation (RFQ) and RLS01 (Remaining Line Structure) processes. The aim is to integrate and automate budgeting and procurement processes, as well as improving the turnaround times and overall processing efficiency in the province.
The Invoice Management System that we introduced in April this year to provide suppliers with a simple, user-friendly portal to submit and track invoices is performing well. In the year to November, more than 8 000 suppliers interacted with the Invoice Management System and submitted 165 000 invoices valued at R35.6 billion. A total of 83 per cent of these invoices were paid within 30 days province wide. As part of initiatives to support small businesses, we are operating the Purchasing Card (P-Card) platform that offers an additional economical participation option for transactions under R30,000. In the current financial year, more than 500 merchants have benefited from this facility, with nearly R3 million in total spend processed through the P-Card system on average per month. This initiative has played a key role in supporting
SMMEs to remain economically active within Gauteng. More options are being explored to make this mechanism to reach a wider spectrum.
ADJUSTMENTS BUDGET
Let me now turn reflect on the Adjustments Budget, which is focused on addressing the frontline services, as a means of equipping GPG to continue responding to the provincial imperatives underpinning the 2024 – 2029 MTDP and the G13 priorities. The total adjustment is R3.3 billion which includes the rollovers, national and provincial funding. As part of this Adjustments Budget, we are allocating an additional R2.2 billion to provincial departments.
These funds are allocated as follows:
• 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.
• 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, School Nutrition and School safety, which are key Goods and Services cost drivers.
• 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.
CONCLUSION
In conclusion, let me say over the past few months, water insecurity challenges in the province have led to service delivery protests in some of our communities. The frustrations by our residents and businesses in the province are valid. In this context, we welcome the recent launch of System 5A, yet another construction feat by bulk water utility,
Rand Water. Rand Water is executing its augmentation programme through the construction of the said water purification facility. System 5A will add 600 million litres a day to Rand Water’s capacity, of which 150 million litres a day is already in use, with the full commissioning and handover expected by the end of December 2025. The implications of System 5A are significant and go beyond ensuring water availability until 2031.
The economy of Gauteng and South Africa, broadly, is heavily reliant on water resources. Rand Water, led by its Group Chief Executive Officer, Sipho Mosai, must be commended for the significant work that it is doing to ensure that the Gauteng Province addresses its water security challenges. But this work depends on the commitment of municipalities to strengthen their own water governance, which is a key requisite for ensuring that households and businesses in Gauteng can continue to function optimally
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