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Joburg Tables R89.4 Billion Budget Focused on Growth and Shielding the Vulnerable
The City of Johannesburg has unveiled a bold, fully funded budget of R89.4 billion for the 2025/26 financial year, signalling a strategic push towards economic revival while standing firm in its support for vulnerable communities.
Finance MMC Margaret Arnolds tabled the budget on Wednesday, emphasising that the city’s plan isn’t just about balance sheets—it’s about justice, equity, and real transformation.
“This is a pro-poor and pro-growth budget, rooted in the values of dignity and fairness,” said Arnolds. “It’s not charity—it’s our responsibility.”
Investing in Services, Shielding the Vulnerable
The city has budgeted R84.8 billion in operating revenue and R80.7 billion in operating expenditure, projecting a R4.1 billion surplus before taxes and grants. This provides financial breathing room while allowing the municipality to invest in critical services.
Electricity, water, and sanitation remain the backbone of the revenue strategy, with electricity charges expected to bring in R25.6 billion, followed by R20 billion from water and wastewater services. Property rates will contribute R18.1 billion, while the national fuel levy allocation is set to rise by 10.8%.
Tariffs for water, sanitation, and electricity are increasing—some by over 12%—but Arnolds reassured residents that these hikes have been carefully balanced to remain below inflation, recognising the economic strain many households face.
Expanded Social Support Package Maintained
Despite these increases, the City has doubled down on its Expanded Social Package (ESP), a programme designed to ensure that struggling households are not left behind. All residents will continue to receive six kilolitres of free water, and qualifying indigent households will access up to 15 kilolitres of free water, 50kWh of free electricity, and free sanitation and refuse removal.
Pensioners are being recognised too—some will qualify for 100% rates rebates on properties valued up to R2.5 million, while child-headed households, people with disabilities, and the unemployed will benefit from targeted subsidies.
“This is what justice looks like in practice,” said Arnolds. “Basic services should never be a privilege—they are a right.”
Growth Through Investment and Inclusion
The capital budget of R8.7 billion, part of a R26.2 billion medium-term investment, will support infrastructure upgrades, service delivery, and job creation.
Johannesburg contributes a massive 15% to South Africa’s GDP, and 44% to Gauteng’s, making it the country’s economic heartbeat. This budget, Arnolds said, is about ensuring that heartbeat continues—while making sure the most vulnerable aren’t left behind.
“When Joburg thrives, the whole country moves forward,” she said. “We are choosing to govern differently—not by reproducing inequality, but by reducing it.”
As the city battles persistent challenges like high unemployment, unreliable electricity supply, and rising costs, the 2025/26 budget offers more than just numbers. It’s a firm stance: to build a city where growth and fairness go hand in hand.
WATCH: MMC for Finance, Cllr Margaret Arnolds, shares why she prioritised highlighting Johannesburg’s youth in her 2025 City of Joburg Budget Speech.#JoburgBudget2025#JoburgReimagined ^GZ pic.twitter.com/eLlCjphlgC
— City of Joburg (@CityofJoburgZA) May 28, 2025
{Source: IOL}
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