{"id":7738,"date":"2025-05-29T09:57:03","date_gmt":"2025-05-29T07:57:03","guid":{"rendered":"https:\/\/www.gauteng.net\/whats-on-g\/?p=7738"},"modified":"2026-03-12T10:34:26","modified_gmt":"2026-03-12T08:34:26","slug":"r89-billion-budget-plan","status":"publish","type":"post","link":"https:\/\/www.gauteng.net\/whats-on-g\/r89-billion-budget-plan\/","title":{"rendered":"City Of Johannesburg Unveils R89 Billion Budget Plan for 2025\/26 Financial Year"},"content":{"rendered":"\n<p>The City of Johannesburg has rolled out the bold R89 billion budget plan for the 2025\/26 financial year, aiming to fix service delivery shortfalls, upgrade essential infrastructure, and strengthen support for the city\u2019s most vulnerable residents. Finance MMC Margaret Arnolds delivered the budget speech at the Connie Bapela Council Chambers in Braamfontein on 28 May 2025.<\/p>\n\n\n\n<p>Arnolds announced that the city\u2019s operating revenue is set to reach R84.8 billion\u2014up 9.3% from the previous year. This growth stems largely from increased service charges, particularly for electricity and water, which remain the city\u2019s primary revenue sources.<\/p>\n\n\n\n<p>ALSO READ: <a href=\"https:\/\/www.gauteng.net\/whats-on-g\/alexandra-electricity-disconnections\/\" target=\"_blank\" rel=\"noreferrer noopener\">Alexandra Residents Clash with City Power Over Illegal Electricity Disconnections<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-electricity-and-water-tariffs-fuel-revenue-growth\">Electricity and Water Tariffs Fuel Revenue Growth<\/h3>\n\n\n\n<p>Johannesburg projects R25.6 billion in electricity service charges, reflecting a 12.5% rise. This follows the 12.41% electricity tariff increase, passed through from Eskom. Beyond revenue growth, the city plans to reduce electricity losses\u2014from 28% to 25.8%\u2014by targeting technical inefficiencies and illegal connections.<\/p>\n\n\n\n<p>Water and wastewater services will bring in about R20 billion, up 11.8% year-on-year. Despite Rand Water\u2019s 15.3% increase, the city has capped its own average tariff hike at 13.9% to soften the impact on consumers.<\/p>\n\n\n\n<p>Other key revenue streams include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Refuse removal<\/strong>: R3.3 billion (up 6.4%)<\/li>\n\n\n\n<li><strong>Property rates<\/strong>: R18.1 billion (up 4.6%), making it the second-largest income source<\/li>\n<\/ul>\n\n\n\n<p>Despite historic challenges in collecting payments, Arnolds assured residents that this budget is fully funded and financially sustainable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-investments-power-water-roads-and-safety\">Key Investments: Power, Water, Roads, and Safety<\/h3>\n\n\n\n<p>The budget plan outlines targeted investments in Johannesburg\u2019s most pressing infrastructure needs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>City Power<\/strong> will receive R4.6 billion over three years to stabilise the grid, expand capacity, and curb electricity losses. The investment seeks to prevent blackouts and accommodate rising demand.<\/li>\n\n\n\n<li><strong>Johannesburg Water<\/strong> gets the second-largest capital injection at R5.6 billion. Funds will address service backlogs and upgrade infrastructure, including new sewer connections in informal settlements and densely populated townships.<\/li>\n\n\n\n<li><strong>Roads and Mobility<\/strong> projects will benefit from R2.8 billion directed at upgrading key corridors connecting townships like Diepsloot, Soweto, and Lenasia to major economic centres.<\/li>\n\n\n\n<li><strong>Stormwater infrastructure<\/strong> improvements in flood-prone areas such as Orange Farm, Ivory Park, and Braamfischerville will receive R400 million to mitigate flash floods.<\/li>\n\n\n\n<li><strong>Public <\/strong><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\"><strong>safety<\/strong>\u00a0will be enhanced through an R16 million investment in the Johannesburg Metro Police Department (JMPD), which is\u00a0<\/span>aimed at fighting crime using modern technology.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-a-budget-for-the-people\">A Budget for the People<\/h3>\n\n\n\n<p>Arnolds described the budget as both \u201cbalanced\u201d and \u201cpro-poor,\u201d reflecting the city&#8217;s commitment to equity and inclusion. One of its core features is the expansion of the <strong>Expanded Social Package (ESP)<\/strong> to reach more vulnerable residents.<\/p>\n\n\n\n<p>Key support measures include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Free basic services<\/strong>: Every household receives 6 kiloliters of water monthly at no charge.<\/li>\n\n\n\n<li><strong>ESP benefits<\/strong>: Qualifying residents get up to 15 kiloliters of water, 50 kWh of electricity, and free sanitation and refuse removal.<\/li>\n\n\n\n<li><strong>Senior citizens<\/strong>: Pensioners with properties valued at R2.5 million or less qualify for rates rebates of up to 100%.<\/li>\n\n\n\n<li><strong>Targeted relief<\/strong>: Indigent households, child-headed families, people with disabilities, and unemployed residents benefit from subsidies on housing, transport, and basic services.<\/li>\n<\/ul>\n\n\n\n<p>To protect low-income residents from rising energy costs, the <strong>prepaid electricity surcharge will remain fixed at R200 (excluding VAT)<\/strong>.<\/p>\n\n\n\n<p>\u201cThis budget plan makes it clear: we will not govern in a way that reproduces inequality,\u201d Arnolds said. \u201cOur pro-poor programme is a political choice rooted in equity, dignity, and redress.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-efficiency-and-maintenance-come-first\">Efficiency and Maintenance Come First<\/h3>\n\n\n\n<p>Employee costs remain the city\u2019s largest expenditure, reflecting a 5.35% salary increase under the Multi-Year Collective Bargaining Agreement. However, Arnolds made it clear that the city will cut back on outsourcing. Contracted services and professional fees will grow only marginally to avoid unnecessary spending.<\/p>\n\n\n\n<p>Instead, Johannesburg plans to boost its internal capabilities and increase its focus on <strong>proactive maintenance<\/strong>. Spending on infrastructure repairs has been ringfenced, ensuring the city addresses its aging assets before problems escalate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-building-a-better-johannesburg\">Building a Better Johannesburg<\/h3>\n\n\n\n<p>With this budget, <a href=\"https:\/\/www.citizen.co.za\/news\/south-africa\/how-joburg-plans-to-spend-r89-billion\/\" target=\"_blank\" rel=\"noreferrer noopener\">the City of Johannesburg <\/a>has laid a solid foundation for a more functional, equitable, and resilient urban environment. Strategic investment in electricity, water, roads, and public safety\u2014combined with a clear commitment to social justice\u2014signals a new chapter for South Africa\u2019s economic hub.<\/p>\n\n\n\n<p>If the city delivers on its promises, Joburg residents can look forward to a future where basic services are reliable, infrastructure is modernised, and no one is left behind.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The City of Johannesburg has rolled out the bold R89 billion budget plan for the 2025\/26 financial year, aiming to fix service delivery shortfalls, upgrade essential infrastructure, and strengthen support for the city\u2019s most vulnerable residents. Finance MMC Margaret Arnolds delivered the budget speech at the Connie Bapela Council Chambers in Braamfontein on 28 May<\/p>\n","protected":false},"author":23,"featured_media":7740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_focus_keyword":"","rank_math_title":"","rank_math_description":"The City of Johannesburg has rolled out the bold R89 billion budget plan for the 2025\/26 financial year, aiming to fix service delivery shortfalls, upgrade...","footnotes":""},"categories":[47],"tags":[1318],"class_list":{"0":"post-7738","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-city-of-johannesburg"},"_links":{"self":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/7738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/comments?post=7738"}],"version-history":[{"count":1,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/7738\/revisions"}],"predecessor-version":[{"id":7741,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/7738\/revisions\/7741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/media\/7740"}],"wp:attachment":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/media?parent=7738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/categories?post=7738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/tags?post=7738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}