Gauteng Finance MEC Lebogang Maile has expressed serious concerns about declining revenue collection in the province, just days ahead of next week’s provincial budget speech.
The warning comes as the Gauteng Provincial Treasury reports that more than 82% of the adjusted provincial budget has already been spent to address pressing service delivery needs. As of the end of January 2026, departments had expended R144 billion out of the adjusted budget of R175.6 billion, which was increased on December 2.
Gauteng Treasury Director-General Mcedisi Vilakazi defended the high spending levels, noting that the province has shifted from past criticism over underspending. In the previous financial year, the province achieved 99% expenditure of its allocated budget. This year, key labor-intensive departments have driven the performance.
For example, the Department of Education spent around R56.6 billion against an adjusted allocation of R68 billion, representing nearly 85% of its budget. Similarly, the Department of Health expended about R55 billion against roughly R68.5 billion adjusted. The Department of Roads and Transport also performed strongly, spending R7.9 billion against a R10.5 billion allocation.
Vilakazi highlighted that spending has been concentrated in social sector departments like education, health, and social development, as well as economic sectors critical to South Africa’s economy. Gauteng remains the country’s economic hub, and these departments play a vital role in sustaining growth and service delivery.
While expenditure is progressing well—including strong non-financial performance in priority sectors—revenue collection presents a challenge. Vilakazi emphasized that fiscal policy focuses on both spending and revenue sides. Own revenue, collected directly by the province, accounts for only about 5% of total provincial revenue, with the majority coming from national equitable share and conditional grants.
Maile pointed out issues with revenue-collecting departments and entities, which have gathered around R2 billion on behalf of the provincial government but have not yet deposited these funds into the Provincial Revenue Fund. Vilakazi confirmed that measures are underway to ensure all revenue-collecting agents deposit these monies promptly. Ongoing engagements aim to secure full deposits before the financial year ends in April, strengthening control over this area of provincial influence.
The developments underscore the balance Gauteng is seeking between aggressive spending to meet community needs and efforts to bolster revenue streams amid economic pressures. The upcoming budget speech is expected to address these fiscal dynamics in greater detail.