GAUTENG GOVERNMENT’S R179.2 BILLION BUDGET TO IMPROVE SERVICE DELIVERY IN THE PROVINCE

The tabling of this Budget takes place during an important month in the calendar of the
republic – Human Rights Month. During this month, we are reflecting on the country’s
constitutional democracy, promoting human rights, and commemorating the struggle against
apartheid. The theme speaks to “Making Human Dignity Real,” which, for us as civil servants,
means ensuring that the fundamental rights that are enshrined in the Bill of Rights exist not
on paper, but as a practical and lived reality that is felt in our communities.
It is for this reason that the theme for the 2026/2027 Budget of the Gauteng Provincial
Government is “The audacity of hope: A collective commitment to building a resilient
Gauteng.”
The audacity of hope is about the courageous and stubborn refusal to succumb to cynicism,
despair, or fear in the face of daunting challenges. Collective commitment is about bringing
all stakeholders together in the quest to build and strengthen an economy that works for the
people of Gauteng. Today, we table a budget that demonstrates our audacity to hope and
our stubborn refusal to accept that internal and external factors are insurmountable.
ECONOMIC REVIEW AND OUTLOOK
Turning to the economic outlook, the National Budget projected that the economy will grow
by 1.6 percent this year, increasing to 1.8 percent in 2027 before reaching 2 percent in 2028.
Gauteng remains the engine of the country’s economy, driven by, among other sectors,
finance, trade, and transport. The province’s annual Gross Domestic Product by Region
(GDP-R) amounts to more than R2.4 trillion. Economic projections in the medium-term point
to steady recovery, with provincial economic growth expected to reach 2.1 percent in 2026 –
significantly above the national average.
Gauteng is positioned to continue increasing the number of jobs created in the province. In
In 2025, we created over 250 000 jobs in the province, with the second quarter of 2025 seeing
a creation of 95 000 jobs – the highest number of jobs created by a single province in South
Africa. There are currently just over 6 million people employed in Gauteng. Trade and
construction was among the leading sectors for job creation, demonstrating that despite the
difficult climate we find ourselves in, businesses continue to have confidence in the capacity
of the province to turn things around.
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GAUTENG INVESTMENT CONFERENCE
Our approach to growth is rooted in the quest for re-industrialisation and the deliberate
inclusion of township and local enterprises in the mainstream economy. To give practical
expression to these commitments, we hosted the inaugural Gauteng Investment Conference
(GIC) in April 2025. The results were significant. The conference attracted over 1800
participants and secured R312.5 billion in investment pledges.
As of February this year, 28 percent of the investment pledges secured in 2025 have already
been converted into projects and are being implemented. Eighteen out of sixty projects are
now in a roll-out stage. These projects are to the value of just over R80 billion, which will
unlock this into the real economy.
STRENGTHENING INFRASTRUCTURE SERVICE DELIVERY
On infrastructure, we agree with the view that was reiterated in the National Budget that
Infrastructure investment is the base for long-term growth, improved service delivery, and job creation
creation, and that government is shifting spending toward growth-enhancing infrastructure.
In the 2026 MTEF, a total budget of R36.4 billion is allocated for the infrastructure
programme. Of this allocation, R26.2 billion is from Conditional Grants and R10.2 billion from
The Provincial Equitable Share. Departments of Health, Education, Human Settlements, and
Roads, Transport, and Education received an allocation of R34.4 billion, whilst the
departments of Sports, Arts, Culture and Recreation, Infrastructure Development, and
Economic Development, Social Development, Agriculture, and Environment received a total
funding of R2.1 billion.
Of this allocation, R22.7 billion is for increasing the existing infrastructure capacity in
response to increasing demand for services, whilst the remaining R13.8 billion funding made
available to improve the condition of the existing infrastructure and activities undertaken to
support the delivery of infrastructure.
PUBLIC-PRIVATE PARTNERSHIPS (PPPs)
In a constrained fiscal environment, Public-Private Partnerships (PPP) remain a critical
instrument in this regard, enabling the government to mobilise private sector expertise,
technology and capital, while ensuring value for money and the efficient delivery of
infrastructure.
We welcome the reforms introduced by the National Treasury through the amendments to
Treasury Regulation 16, which came into effect in June 2025. Furthermore, the Municipal
PPP regulations are also expected to be finalised by 30th June 2026, enabling local
government to participate more effectively.
The Gautrain remains a flagship example of a successful Public-Private Partnership in our
province. As the current concession agreement approaches its conclusion in March 2026,
we are advancing the procurement process to appoint a new concessionaire to operate,
maintain, and modernise the Gautrain system under a renewed PPP arrangement.
By the end of the current concession period, the Gautrain will become a fully paid-up state
asset valued at approximately R45 billion, placing the province in a stronger position to
maximise the long-term economic and mobility benefits of this strategic investment.
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Beyond the Gautrain, we will continue to explore opportunities to expand the use of Public
Private Partnerships across other strategic infrastructure sectors, including transport,
tourism, water, energy, digital infrastructure, and environmental services, as part of our
broader strategy to unlock investment, stimulate economic growth, and improve the quality of
life for the people of Gauteng.
Gauteng Provincial Network, Provincial Data Centre, and Scholar Transport, just to
mention a few, are currently under consideration for delivery through the PPP model.
2026 MTEF BUDGET ALLOCATIONS
Let me now turn to reflect on the Budget, which is focused on addressing the frontline services
and responding to the provincial priorities as outlined in the Gauteng Medium Term
Development Plan and the G13 interventions.
Over the 2026 Medium Term Expenditure Framework (MTEF), the Gauteng Provincial
The government budget will amount to well over half a trillion Rand – R549.3 billion, of which
R179.2 billion, R182.4 billion, and R188.2 billion are respectively allocated to the 2026/2027,
2027/2028 and 2028/2029 financial years.
These funds are allocated as follows:

• The Gauteng Office of the Premier is allocated R1.6 billion in 2026/2027 or a total of
  R4.7 billion over the MTEF, to drive implementation of the 2024-2029 MTDP. The focus
  remains on tackling crime, growing the economy, and investing in education and skills
  development.
• To strengthen democracy and reinforce accountability, the Gauteng Provincial
  Legislature receives a total of R1.4 billion in 2026/2027, increasing to R3.3 billion over
  The MTEF is to support law-making, oversight, and public participation.
• The Gauteng Department of Economic Development receives R1.8 billion in the
  2026/2027 financial year, rising to R4.9 billion over the MTEF, to drive inclusive growth
  and create jobs through economic development and investment promotion. This
  allocation supports the work of the Gauteng Growth and Development Agency and
  Gauteng Enterprise Propeller, with a strong focus on Special Economic Zones
  development, township automotive hubs, revitalisation of industrial parks, the Vaal
  Special Economic Zone, bulk infrastructure for Phase Two of Tshwane Automotive
  Special Economic Zone, and trade facilitation under the African Continental Free Trade
  Area.
• The Gauteng Department of Health is allocated a total of R70.3 billion in 2026/2027,
  increasing to R218.6 billion over the MTEF, to strengthen the public health system,
  expand access, and improve the quality of care. The funding will support maternal and
  child health, the Ideal Clinic and Ideal Hospital programmes, and improved emergency
  medical response times
• The Gauteng Department of Education is allocated R70.9 billion in the 2026/2027
  financial year, increasing to R221.8 billion over the MTEF to improve the Early Childhood
  Development Strategy, learner performance programmes such as Secondary School
  Improvement Programme, school safety initiatives, pro-poor interventions, including
  nutrition and scholar transport, Schools of Specialisation, and inclusive education
  through special schools.
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• To support vulnerable residents and reduce poverty, the Gauteng Department of
  Social Development receives R5.6 billion in 2026/2027, increasing to R17.2 billion over
  The MTEF. The funding will go towards skills development for vulnerable groups, the
  provincial homelessness strategy, food security interventions, Bana Pele, child and youth
  care centres, community prevention services, substance use disorder treatment,
  aftercare services, and upgrades to state-owned facilities.
• A total of R680.5 million is allocated to the Gauteng Department of Cooperative
  Governance and Traditional Affairs in 2026/2027, rising to R1.9 billion over the MTEF.
  These resources will be used to strengthen disaster management capacity, community
  development workers, the e-indigent register, municipal metering interventions, and
  EPWP support for employment creation initiatives and stabilising energy supply.
• The Gauteng Department of Human Settlements is allocated R5.5 billion in 2026/2027
  and R16.6 billion over the MTEF to upgrade informal settlements, providing interim
  sanitation, delivering mega housing projects, and Breaking New Ground units.
• To build an integrated, safe, and affordable transport system, we are allocating a total of
  R10.2 billion in 2026/2027 and R27.8 billion over the MTEF to the Gauteng Department
  of Roads and Transport to improve transport infrastructure, strategic road upgrades
  and rehabilitation linked to Special Economic Zone access.
• The Gauteng Department of Community Safety receives a total of R2.3 billion in
  2026/2027, rising to R7 billion over the MTEF to protect communities and strengthen
  policing oversight, school safety, road safety, and the fight against gender-based
  violence and femicide (GBVF). This budget includes R159.6 million allocated for the
  training and uniform of Traffic Officers and Peace Officers in line with the
  recommendation of the report from the Public Protector.
• The Gauteng Department of Agriculture and Rural Development is allocated R742.6
  million in 2026/2027, increasing to R2.2 billion over the MTEF, to strengthen food
  security and build competitive agricultural value chains. This budget includes a targeted
  R63.9 million funding to contain Foot and Mouth Disease through vaccination and
  surveillance.
• The Gauteng Department of Sport, Arts, Culture and Recreation will receive R1
  billion in 2026/2027 and R3.2 billion over the MTEF to support school sport and school
  arts programmes, community-led social cohesion initiatives and dialogues, the Premier’s
  performing arts programme, and assistance to municipalities for library services that
  promote reading, learning, and a sense of belonging.
• To expand ICT connectivity and modernise service delivery, we are allocating R1.9
  billion in 2026/27 and R5.2 billion over the MTEF to the Gauteng Department of e
  Government. The funding will support the Gauteng Provincial Network, the expansion of
  township Wi-Fi hotspots and the installation of CCTV to improve safety in the township
  communities.
• The Gauteng Provincial Treasury will receive R788.4 million in 2026/2027 and R2.5
  billion over the MTEF to support infrastructure planning and delivery capacity, the
  deployment of municipal finance experts to strengthen municipal financial management,
  and supply chain management reforms.
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• The Gauteng Department of Infrastructure Development is allocated a total of R3.7
  billion in the 2026/2027 financial year, with a cumulative total of R10.9 billion over the MTEF,
  to support provincial infrastructure delivery and maintenance, the CBD and precinct
  revitalisation, office consolidation, EPWP, and National Youth Service work opportunities.
• To protect natural assets and build a more resilient Gauteng, we are allocating a total of
  R646.6 million in 2026/2027, increasing to R2 billion over the MTEF in Gauteng
  Department of Environment. This funding will support upgrades to air quality
  monitoring, feasibility work for an integrated waste management facility, recycling
  infrastructure and buy-back centre upgrades.
  CONCLUSION
  In conclusion, let me say the social sector – Health, Education, and Social Development –
  collectively account for an average of 83 percent of the total budget over the MTEF. It is for
  this reason that we are determined to anchor discipline in how we manage the resources of
  the province, the bulk of which is allocated to services that our people engage with daily.
  We must be honest about our fiscal reality and the nature of obligations that significantly
  narrow our room to manoeuvre. For example, the province has already paid R9.3 billion
  against the principal e-Toll debt of R20 billion, and R4.6 billion is required for the next
  instalment in June 2026. In the last two years of the 2026 MTEF, a further R6.2 billion must
  be paid. These are consequential amounts that will have a significant implication on how we
  plan and execute.
  That national message is important for Gauteng. We must protect front-line services, but we
  must also demand better performance from every rand through targeted and responsible
  savings as an ongoing feature as we strive to close leakages and root out inefficiencies.

SUPPLIED