The Gauteng Provincial Treasury (GPT) has noted, with great concern, articles in the media
making claims about the alleged imminent bankruptcy of the Gauteng Provincial Government
(GPG) and a R6 Billion shortfall by June 2025. While these assertions are not new, and have
previously been refuted, there is need to provide a comprehensive response in the public
interest. These articles merit correction as they are grounded on an erroneous premise that
will only serve to sow despondency among the residents and businesses in the province.
2024/25 GPG Expenditure Performance
As at the end of November 2024, overall expenditure for GPG stood at R115.238 billion or 68
percent of the adjusted budget of R169 213 billion, leaving an amount of R53.9 billion available
to be spent until end of March 2025. This expenditure is mainly driven by education and health
departments, which account for 80 percent of the total expenditure.
The Gauteng Department of Health expenditure is R46.1 billion or 69.8 percent against the
adjusted appropriation of R66.017 billion. This is attributed to the main programmes: Central
Hospital Services, District Health Services and Provincial Hospital Services. The department
received additional R600 million during the recent adjusted budget to partially offset pressures
in the Compensation of Employees. The Gauteng Department of Education expenditure is
R45.9 billion or 69.5 percent against an adjusted budget of R66.142 billion, with high spending
emanating from the Public Special Schools and Early Childhood Development programmes.
Expenditure for Goods and Services at the end of November 2024 amounts to R5 billion of
the adjusted allocation, on account of accruals from the previous financial year. Due to in-year
pressure, the department received an additional R300 million during the adjustment budget to
partially offset pressures in the Compensation of Employees.
Overall GPG budget increased by R3.4 billion during the 2024/25 adjustment budget which
comprises of function shifts, surrenders and suspensions (R92.9 million), rollovers (R1.2
billion) and provincial additional funding R2.1 billion. While the 2024/25 Adjustments Budget
saw a net injection of R3.4 billion in the form of additional funding and approved rollovers,
there is still pressure in a few other departments. This will necessitate further reprioritisation
to avoid unauthorised expenditure at the end of the financial year.
e-Toll debt and impact on provincial fiscus
On the 11th of April 2024, gantries of the Gauteng Freeway Improvement Project, popularly
known as e-tolls, were officially disconnected from the e-toll system across the province.
Following the initial announcement by Finance Minister Enoch Godongwana during his 2022
mid-term budget policy statement (MTBPS) that e-tolls would be scrapped, the South African
National Roads Agency SOC Limited (SANRAL), the National Department of Transport, the
National Treasury and the Gauteng Provincial Government finalised a Memorandum of
Agreement. To resolve the funding impasse, the Gauteng Provincial Government agreed to
contribute 30 per cent to settling SANRAL’s debt and interest obligations, while the national
government would cover 70 per cent.
Congruent with this, in the Budget Speech in March 2024, the GPT announced that as part of
the province’s arrangements to service the debt, a provision for honouring this commitment
had been pencilled into the 2024 fiscal framework. The obligation to service this debt has
necessitated the implementation of a host of reforms and measures to maintain a healthy
fiscal environment that will be both sustainable and manageable in the long term. True to our
commitment, in September 2024, we made the first instalment amounting to R3.8 billion. This
amount consisted of R3.2 billion historical debt and the maintenance portion of R546 million.
As the GPG, we have a full appreciation of the implications that repaying the e-toll debt will
have on our financial position. The debt of R20.1 billion, inclusive of interest, is a substantial
bite into our already stretched and limited resources. To meet our obligations to repay this
debt, we have had to make very difficult decisions and re-orientate our budget priorities, which,
necessarily, will have an impact on the fiscus. But we have remained steadfast in the
commitment that service delivery priorities will not be negatively impacted. The 2025 Budget
will see a conclusion of the national fiscal consolidation strategy, with debt‐stabilising primary
surplus achieved in 2025/26, a reduction in the fiscal deficit to pre‐COVID levels and a
stabilisation of debts service costs as a percentage of revenue.
The GPT is therefore confident that through the measures and reforms mentioned above, the
province will be able to service the e-toll debt, simultaneously providing much needed services
to the citizens of Gauteng, whilst reaping the benefits of the spinoffs of economic infrastructure
initiatives. It is in this context that the department would like to assure residents of Gauteng
that we will not compromise our priorities on social services such as health and education
which, as outlined, are receiving a significant share of the provincial budget as it is.
