The Gauteng Provincial Government entered the 2025/26 financial year with a main budget of R172.3 billion, which was later adjusted to R175.6 billion and adopted by the Gauteng Provincial Legislature. This amount, though significant, is insufficient to deal with the monumental structural challenges that confront the Gauteng Province, whose demographic profile as the most populous and fastest-growing province in South Africa poses significant pressures on its public services and infrastructure.
Gauteng is operating under a difficult economic environment – one that is characterised by geopolitical tensions, slow growth, high levels of unemployment and a cost-of-living crisis that is especially pronounced in metropolitan municipalities that have a high population density and thus, greater competition for resources.
To strike a balance between the growing demand for public services and the fiscally constrained economy, we have employed a combination of active debt management and revenue generation strategies, as well as spending restraint. This is reflected in this expenditure report for the period 01 April 2025 to 31 January 2026 that we will be outlining herein.
As at end of January 2026, the total Provincial Receipts amounted to R149.2 billion, which translates to 83.7 percent of budgeted provincial receipts. Of this amount, R115.67 billion was derived from the Provincial Equitable Share (PES) and R1.8 billion from Provincial Financing. The PES is a system where the national government distributes a portion of its revenue to the country’s nine provinces. The national government collects revenue from various sources like taxes and levies, which are deposited into the National Revenue Fund. A portion of this revenue is then allocated to each province based on a formula. The distribution formula aims to balance the needs of different provinces, taking into account the population size,
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poverty levels, and other factors. The provinces then use this funding to deliver essential services.
The conditional grants amounted to R25.7 billion of the provincial receipts. Conditional grants from the National Treasury are specific allocations of funds from the national government to provinces and municipalities, with the condition that they are used for specific purposes aligned with national policy goals. These grants aim to ensure that provinces and municipalities adhere to national standards and priorities and can be used for capital projects or operational expenses, depending on the grant’s specific conditions, which are outlined in the Division of Revenue Act, No. 24 of 2024 (Dora).
Own Revenue collection amounted to R5.9 billion, translating to 70 percent of the appropriated target of R8.4 billion for the 2025/2026 financial year. As at end of January 2026, Own Revenue collection was below the straight-line projection of 83 percent.
EXPENDITURE BY GAUTENG PROVINCIAL GOVERNMENT DEPARTMENTS
As indicated, the Gauteng Provincial Government entered the 2025/2026 financial year with a main budget of R172.3 billion, which was later adjusted to R175.6 billion and adopted by the Gauteng Provincial Legislature. As at the end of January 2026, the overall expenditure for the Gauteng Provincial Government stood at R144.4 billion, which represents 82.2 percent of the adjusted budget as departments accelerated spending to meet the service delivery needs of people in the province.
The breakdown of expenditure by departments, with the expenditure percentages rounded off per accounting practice, is as follows:
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The Department of Infrastructure spent R3.1 billion or 83 percent of the adjustment budget of R3.7 billion.
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The Department of Environment expenditure is R480 million or 71 percent of the R672.1 million adjusted budget. There are still some shared corporate functions between the Gauteng Department of Environment and the Gauteng Department of Agriculture and Rural Development, which contribute to spending outcomes for both departments.
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The Gauteng Provincial Treasury expenditure is R603.7 million or 78 percent of the adjustment budget of R775.8 million.
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The Department of e-Government expenditure is R1.6 billion or 80 percent of the adjustment budget of R1.9 billion.
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The Department of Sports, Arts, Culture and Recreation expenditure is R821.1 million, or 79 percent of the adjustment budget.
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The Department of Agriculture and Rural Development expenditure is R479.8 million or 70 percent of the adjustment budget.
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The Department of Community Safety expenditure is R2.1 billion or 83 percent of the adjustment budget in the period to January 2026.
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The Department of Roads and Transport expenditure is R8 billion or 79 percent of the budget of R10.1 billion.
