Gauteng Tables R527 Billion Budget to Drive Infrastructure and Economic Growth

Gauteng MEC for Finance and Economic Development, Lebogang Maile, has unveiled a R527 billion budget aimed at boosting infrastructure, service delivery, and job creation in the province. The budget focuses on alternative funding models, infrastructure acceleration, enhanced revenue collection, and new revenue sources to drive economic recovery.

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.

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.

R9.7 Billion Allocated to Roads and Transport

The budget includes a R9.7 billion allocation to the Department of Roads and Transport for the 2025/26 financial year. The funds will be used to repair traffic lights, fix potholes, and improve road infrastructure across the province.

With a strong focus on investment attraction, infrastructure development, and fiscal responsibility, Gauteng’s latest budget aims to strengthen economic resilience and improve service delivery for its residents.

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