Gauteng Finance MEC Maile Tables Budget 2.0 with Focus on Fiscal Discipline and Transparency


Johannesburg: Municipal fiscal discipline, good governance, and transparency are the key elements propelling the Gauteng Provincial Government going forward. These principles were emphasized by Gauteng MEC for Finance and Economic Development, Lebogang Maile, who presented the provincial budget for 2025/26 in the Gauteng Provincial Legislature on Tuesday.



According to South African Government News Agency, the Gauteng budget 2.0 for the 2025/26 financial year is R172.3 billion, an increase of some R886.6 million from the budget tabled earlier this year. As he tabled the budget, Maile registered ‘serious concern’ that only four municipalities have tabled funded budgets while the rest remain unfunded, damaging the credibility of budgets. ‘We have stated repeatedly that fiscal discipline requires that municipalities maintain fiscal positions that are consistent with macroeconomic stability and sustained economic growth,’ he stated. To reinforce fiscal discipline, the Gauteng Provincial Government and Gauteng municipalities must fund their requirements within the set budget ceilings. This necessitates large-scale budget reprioritization, making trade-offs, and a drive to identify efficiency gains, all with the aim of enhancing the credibility of the provincial and municipal budgets.



The Provincial Treasury is stepping in by providing support to delegated municipalities by ‘conducting budget assessments on the tabled/draft budget to assist municipalities with improving their budget funding positions.’ The outcomes of this intervention will be confirmed by the final budget assessments to be conducted on adopted budgets. On revenue matters, municipalities, with the assistance of the Gauteng Provincial Treasury, have conducted cost-reflective tariff assessments to determine if current tariffs adequately cover the full cost of delivering the service, Maile said.



Maile told the provincial legislature that supply chain management (SCM) was the most critical component supporting service delivery to Gauteng citizens. The administration is addressing SCM capacity challenges associated with issues including irregular expenditure, incomplete infrastructure projects, litigation to reverse awards or stop procurement processes already underway, high levels of accruals, and late payments. These issues have a negative impact on service delivery, while late payments severely affect small, medium, and micro enterprises, the MEC noted.



A capacity assessment found that there was under-capacitation in areas such as contract and project management. Furthermore, there has been limited ability to balance compliance and matters of the transformative role of SCM. The SCM systems need modernization to improve transparency and offer protection to process integrity. Maile mentioned working on a personnel recruitment and placement strategy to balance capacity needs in all critical functions. Digitization will be key to improving the provincial government’s inefficient SCM systems.



It is a primary objective to ensure that provincial departments and entities in Gauteng receive all their tenders electronically, and that the evaluation of said tenders is conducted through advanced technological means. This digitization is crucial to stem the tide on inefficient SCM processes. In this regard, the Gauteng Provincial Government has been working with the Gautrain Management Agency to adapt the advanced procurement system solution that they have already implemented.



The MEC emphasized the need for a raft of measures to turn around SCM and general financial management in the province. Financing institutions must trust that when the Gauteng Provincial Government issues a purchase order, subsequent processes shall ensure that payment happens timely-in 30 days for all commitments, 15 days for SMMEs, and 10 days for township suppliers. This approach aims to transform the economy by making it inclusive and supporting communities on the margins.



Other measures include creating a system that reflects universal prices for government-consumed commodities, which the provincial treasury has been exploring by working on a Market Research Price Data Solution. The age of disproportionate increased pricing by suppliers for the government must be eradicated. With these measures, accounting officers and authorities will be empowered to make decisions anchored in competitive prices for budgeting and contracting decisions. The measures are designed to eliminate corruption, build confidence in procurement systems, and facilitate inclusive economic growth and transformation. The provincial government is unequivocal in its stance that no business in Gauteng should have to pay an incentive to participate in the economy, whether to provide services to the state or to receive payment for services rendered.