By Lehlohonolo Lehana.
The City of Tshwane (CoT) tabled a draft budget of R54.6 billion for the 2025/26 financial year in council on Thursday.
Delivering the 2025/26 budget speech at Tshwane House, MMC of Finance Eugene Modise said the budget he tabled was a fully funded budget.
A funded budget means the city’s projected revenue is less than its expenditure.
This is the first time the capital has achieved a funded budget since 2021, amid a range of financial constraints.
“The capital budget is R2.4bn and our operational budget is R52.2bn and the total grant is R7.4bn. It is important to note that this budget has been fully funded without relying on borrowing.
“A fully funded budget is essential to securing the city’s financial stability,” he said.
Modise said the budget was crafted to prioritise six strategic focus areas .
“Financial stability and revenue collection enhancement, economic revitalisation and investment attraction, infrastructure development and civic delivery, safe and clean, and social service wellbeing.”
The budget seeks to ensure that rates and tariffs are as fair and affordable as possible, said Modise.
For the 2025/26 financial year, he said, the indigent threshold has been revised upwards from R150 000 to R250 000 under the new general valuation roll.
“This change will extend its support to approximately 180 000 households that fall within this threshold,” he said.
Modise announced a fixed charge of R194 per month for households using private refuse collection, saying it is aimed at improving urban cleanliness and waste management.
He said: “Much has been made of this proposed cleansing levy. It must be noted that this levy is not new or unique to Tshwane. A cleansing levy was introduced some years ago and was duly taken on judicial review in order for its implementation to be regularised.”
Modise pointed out that the budget allocates R1.4bn for repairs and maintenance to foster a culture of asset upkeep.
For example, he said, Region 1 will receive R27.42m for projects like the Soshanguve IA and W substations’ refurbishment, while Region 2’s R23m allocation will support the Pyramid Substation and public lighting initiatives.
Herman Mashaba, ActionSA president, welcomed the tabling of the first fully-funded budget since 2021, saying it reaffirms the coalition’s commitment to good governance, financial stability, and improved services for all residents.
Mashaba said the budget acknowledges the city’s severe infrastructure challenges, resulting from years of mismanagement and underfunding, and represents a positive shift through targeted investments.
The Democratic Alliance (DA) spokesperson on finance, Jacqui Uys, said: “This budget is not serving the residents of Tshwane but becomes part of the ANC’s quest to look good on paper but fail in its real mandate – delivering services.”
She said the DA will continue to push for a budget that raises the property tax exemption from the current R150,000 to R450,000.
She argued that such a budget would bring relief to residents facing sharp property value increases and help poorer households access the city’s free services for indigent families.