Gauteng Finance MEC Nkululeko Dunga has unveiled a comprehensive roadmap to stabilise the province’s R179.2 billion budget for the 2026/27 financial year.
The MEC held a media briefing this week on the state of the province’s finances and a programme of action in this regard.
Dunga warned that the provincial fiscus “does not exist in isolation” and must navigate a global landscape marked by geopolitical instability and rising costs.
“These global developments have direct implications for the people of Gauteng. Rising fuel prices increase the cost of public transport, food, logistics, construction materials and electricity generation, placing further pressure on working-class households and the provincial fiscus itself.
“At the domestic level, South Africa’s economy remains under severe strain. The South African Reserve Bank estimates that the economy grew by only 1.1% in 2025, which remains far below the levels required to fundamentally transform the economy, absorb unemployment and expand the tax base of the State.
“At the same time, unemployment continues to deepen,” he noted.
On the back of this, the MEC emphasised a shift toward radical transparency and accountability in managing public funds.
“It is important that, from the onset, we state clearly that we will not mislead the people of Gauteng about the state of provincial finances and the challenges before us. As Amílcar Cabral once reminded revolutionaries, we must ‘tell no lies and claim no easy victories’. That principle must guide public finance management in Gauteng,” he said.
Setting priorities
A major priority for the Provincial Treasury is the eradication of “accruals”, unpaid invoices that stifle small businesses.
As of March 2026, provincial accruals stood at R9.3 billion, with nearly half exceeding the 30-day payment legislated timeframe.
“The direct consequence of this situation is collapsing businesses, job losses, weakening local economic activity and declining confidence in the state’s ability to honour its obligations on time.
“The reality is that some departments have effectively normalised operating beyond their financial capacity through over-commitments, delayed invoice processing, poor contract management and weak expenditure controls.
“We are therefore undertaking an urgent province-wide assessment of accruals, unpaid invoices, rollover requests and expenditure commitments, together with strengthened intervention measures aimed at restoring payment discipline, improving financial controls and ensuring that service providers are paid within legislated timeframes,” he said.
Turning to the state of municipalities in the province, Dunga warned that this remains one of the most “serious risks” to the province’s finances and its developmental trajectory.
He noted that as at the end of the last financial year, the province’s municipalities collectively reported outstanding debtors amounting to approximately R173.3 billion.
“Municipalities continue to confront declining revenue collection, escalating creditor obligations, collapsing infrastructure maintenance, weak governance systems and persistent failures in financial reporting and compliance.
“At the same time, municipalities reported outstanding creditors of approximately R34.3 billion, although the actual figure is likely far higher due to the under-reporting of debt owed to Eskom and Rand Water. Municipalities collectively under-reported debt owed to Eskom by approximately R12.7 billion and debt owed to Rand Water by approximately R2.7 billion. Several municipalities continue operating with unfunded or structurally weak budgets whilst infrastructure deteriorates and service delivery declines,” he said.
In response to these mounting pressures, Dunga presented a programme of action to strengthen State capacity. This includes:
- Stabilisation of provincial finances, including urgent intervention on accruals, unpaid invoices, rollover requests, conditional grants, expenditure pressures and recurring audit findings across departments and entities;
- Intensified intervention measures through MFMA Sections 138 and 140 financial health assessments, which are aimed at identifying municipalities experiencing financial problems;
- Expanding the provincial artisanal training programme as part of rebuilding internal technical capacity within government;
- Intensify interventions aimed at addressing deteriorating provincial infrastructure, including schools, hospitals, clinics, roads, government buildings and public facilities, together with all other departments;
- Engage on the strengthening and possible full-time integration of the traffic wardens, affectionately known as Amapanyapanya, as part of broader interventions aimed at combating crime
“The programme of action… will not be implemented in isolation by Gauteng Provincial Treasury alone. Its implementation will take place through continuous consultation, coordination and engagement with provincial departments, municipalities, entities and stakeholders under the leadership of the Premier of Gauteng. We are not going to work in silos.
“[Despite] these pressures, we remain committed to strengthening governance, rebuilding institutional capacity, improving oversight, eliminating leakages and ensuring that every available public resource is utilised more effectively, transparently and in a manner that delivers visible developmental outcomes.
“The success of public finance management will ultimately not be measured by accounting processes alone, but by whether communities experience improvements in schools, clinics, roads, housing, transport, municipal services, public safety and broader living conditions across Gauteng,” Dunga concluded. – SAnews.gov.za
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