Maile warns about growing pressure on Gauteng’s R175.6bn adjusted budget

Gauteng Finance MEC Lebogang Maile has warned about the growing pressure on the province’s R175.6 billion adjusted budget as demand for services continues to rise.

Maile, who will table the province’s budget on Tuesday, previously said the province was struggling to meet increasing needs driven by rapid population growth and an unemployment rate of about 33%, which is higher than the national average.

At the same time, Gauteng’s revenue sources have been declining, with the situation worsened by, among other things, owing municipalities.

One of the biggest income streams is motor vehicle licence fees collected by municipalities, which must paid over to the provincial government.

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Gauteng’s financial strain comes as the province must balance its core spending responsibilities, such as education, healthcare and social services, with major infrastructure commitments.

These include plans to expand the Gautrain network and a pledge of close to R1 billion to repair and upgrade water infrastructure.

Gauteng is also still paying off debt linked to the failed e-toll system.

The provincial government said it has already paid about R10 billion towards the debt, with further payments expected in the coming months.

Meanwhile, the province is struggling to keep pace with demand for new schools as the population grows, while some programmes, such as scholar transport, have faced under-budgeting.

Adding to the pressure is ever rising public sector wage bill.