By Lehlohonolo Lehana.
Gauteng MEC for Finance and Economic Development, Lebogang Maile has tabled the 2025 medium-term expenditure framework (MTEF) budget, amounting to over half a trillion rand.
Maile outlined the financial direction for the Gauteng provincial government during the next three years.
The total allocation for the medium term is R527.2 billion, growing incrementally at an annual average of 3%, from R171.5 billion in 2025/26 to R180.5 billion by 2027/28.
The Gauteng department of health has been allocated a budget of R66bn, an increase of R1.2bn from the previous year.
The department also received the largest share of conditional grants, increasing from R28.9bn in the 2025/26 financial year to R29.2bn in 2027/28.
The department of human settlements will receive R5.8bn in the 2025/26 financial year.
It also received the second-highest allocation of conditional grants, amounting to R4.8bn in 2025/26, which will decrease to R4.5bn in 2027/28.
These conditional grants include the human settlements development grant, the informal settlements upgrading partnership grant, and the Expanded Public Works Programme Grant for job creation initiatives.
The department of education has been allocated a budget of R69.6bn reflecting a R3.2bn increase from last year’s budget.
The department’s conditional grants budget decreased from R4.1bn in 2025/26 to R3.9bn in 2027/28, with education infrastructure projects receiving the largest share, followed by the National School Nutrition Programme. From its budget, R2.8bn has been prioritised for infrastructure projects.
The department of social development has been allocated R5.5bn for the 2025/26 financial year, a R100mn increase from last year’s budget.
The department of roads and transport has been allocated R9.7bn for the 2025/26 financial year.
Its conditional grants allocation fluctuates from R4.7bn in 2025/26 to R4.2bn in 2027/28.
Department of sports, arts and culture has been allocated a budget of R1bn.
Department of agriculture and rural development has been allocated a budget of R2bn.
Department of cogta has been allocated R551.4m in the 2025/26 financial year and R1.7bn over the medium term.
Department of economic development will be allocated R1.6bn in 2025/26 financial year and R4.9bn over the medium term.
Department of infrastructure development has been given R3.6bn for the 2025/26 financial year and R3.1bn over the medium term.
Gautrain to Become a Provincial Asset by 2026
Maile revealed that by March 2026, the Gautrain system will become a fully paid-up asset of the province, valued at R45 billion.
“Post-2026, the Gautrain will be procured via a public-private partnership, ensuring its sustainability and efficiency,” he added.
Gauteng’s Economy Remains Stable Amid Challenges
Despite concerns about economic decline, Maile dismissed claims that Gauteng is on the brink of financial collapse.
“The provincial budget, along with financial and economic review documents, provides a clear roadmap for building an inclusive and sustainable economy,” he said.
Earlier this year, Maile had to address concerns raised by the Democratic Alliance (DA), which accused the province of nearing bankruptcy. In response, he defended Gauteng’s R169 billion budget, noting that its effectiveness hinges on wise spending decisions.
He acknowledged that South Africa’s economy grew by just 0.6% in 2024 due to structural challenges and logistical constraints. However, projections indicate 1.7% growth in 2025 and 2026.
“To address our economic challenges, the South African economy needs to grow by at least 5% annually, driven by infrastructure investment and skills development. This is especially critical for Gauteng, which has the largest population in the country,” Maile stated.
Gauteng Aims to Secure R800 Billion in Investments
Maile announced that Gauteng will host its first-ever Investment Conference on April 3, 2025, to attract R800 billion in investment commitments over the next three to five years.
“The event will serve as a platform for engagement with public and private sector investors on key policy measures to bolster energy security, revive industrial competitiveness, and leverage private-sector investment to accelerate economic recovery, “he stated.
The MEC emphasised the importance of value-for-money government spending to turn Gauteng’s economy around, adding that the expansion of the Gautrain service will be central to this economic strategy.
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Video Courtesy of GPL.