Gauteng 2025/26 Budget Speech: Key Allocations, Priorities, and Economic Recovery Plans

Gauteng’s MEC for Finance and Economic Development, Lebogang Maile, delivered the 2025/26 Provincial Budget Speech on Tuesday, 3 June 2025, outlining how Africa’s economic powerhouse plans to navigate constrained fiscal conditions, national growth, and mounting service delivery demands. The re-tabled budget prioritizes economic recovery, infrastructure expansion, public service efficiency, and social transformation.

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Gauteng’s Economic Reality

As South Africa’s smallest yet most populous province, Gauteng contributes over 35% to the national GDP, with Johannesburg and Tshwane driving economic activity. In 2024, the provincial economy grew by 1.3%, and forecasts suggest 1.8% growth in 2025 and 2% in 2026.

The province faces serious socio-economic challenges: unemployment, service delivery delays, infrastructure decay, and inequality. MEC Maile highlighted the importance of achieving more with less in the budget speech, therefore reaffirming Gauteng’s commitment to being a leading province in driving transformation.

Total Budget Overview

The Medium-Term Expenditure Framework (MTEF) allocates R527.2 billion over three years:

• 2025/26: R171.5 billion
• 2026/27: R175.1 billion
• 2027/28: R180.5 billion

95% of funding will come from national transfers, with the remaining 5% generated through own revenue, including motor vehicle licensing fees, gambling taxes, and interest income. Gauteng projects its own revenue to grow from R8.3 billion to R9.1 billion over the MTEF.

Spending Priorities: Focused, Impactful, Inclusive

1. Education – R69.6 Billion

• Prioritizes school safety, Early Childhood Development (ECD), and inclusive classrooms.
• Infrastructure upgrades for overcrowded schools and the digitization of learning platforms.

2. Health – R66 Billion

• Strengthens primary healthcare, digitizes patient records, and modernizes hospital infrastructure.
• Focus on reducing surgical backlogs and improving rural access to medical care.

3. Social Development – R5.5 Billion

• Targets vulnerable groups with skills development, GBV response, and nutrition programs.
• Investment in shelters, care centres, and community outreach initiatives.

4. Infrastructure Development – R36.6 Billion (over MTEF)

• Funds new schools, roads, clinics, and water systems.
• Supports Special Economic Zones (SEZs) like OR Tambo and Vaal SEZ to attract investment.
• Includes blended finance models for better project execution.

5. Public Safety & Roads

• R9.7 billion to Roads and Transport
• R2.4 billion to Community Safety
• Deployment of Gauteng Traffic Wardens and improved road links to economic hubs.

Tight Controls & Fiscal Discipline

MEC Maile emphasized the province’s commitment to fiscal prudence:

• All departments face baseline reductions.
• Wage bill capped below 60% of expenditure to prevent service delivery erosion.
• A new AI-driven Invoice Management System ensures faster supplier payments and accrual control.
• No new major expansions unless existing projects are fully funded and assessed.

Public–Private Partnerships and Investment

The 2025 budget promotes collaboration with the private sector to stimulate economic activity and job creation:

• The Gauteng Investment Conference held in April 2025 attracted over R800 billion in pledges.
  • Key growth sectors include ICT, logistics, agriculture, and renewable energy.
• The province has already poured R15.1 billion into township enterprises since 2019.
• Plans to restructure procurement systems to empower black-owned and township-based suppliers.

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Major Strategic Projects

Gautrain Expansion

• The Gautrain system will enter a new period post-2026 with a PPP model that aims to improve service delivery and financial sustainability.

Gauteng–Limpopo Freight Corridor

• Joint project with Limpopo to create a freight rail corridor to support AfCFTA goals and unlock cross-border trade.

SEZ Development

• Vaal SEZ and Tshwane Auto SEZ receive continued support.
• Focus on bulk infrastructure to attract manufacturing and logistics companies.

Governance, Audits, and Anti-Corruption

• 7 provincial departments and 2 municipalities achieved clean audits.
• The Open Tender System has expanded to all tenders above R2 million.
• Gauteng now employs real-time expenditure tracking and automated alerts for budget overruns.
• Departments face penalties for poor project management or budget irregularities.

Doing More with Less

Maile’s 2025/26 budget underscores Gauteng’s approach of “delivering more with less.” The province remains committed to investing in people, strengthening infrastructure, and transforming local economies, even in the face of tighter budgets and global uncertainty.

“This budget is not just about numbers—it is about people. About their hopes, livelihoods, and dignity,” said Maile.

The budget speech signals a strategic shift—from expansion to consolidation, from consumption to investment, and from exclusion to inclusion. Gauteng’s vision for the future remains clear: a dynamic economy that leads South Africa into a more equal and prosperous era.