Tshwane says R2bn staff-cost ‘gap’ reflects planning difference, not an unfunded liability

The City of Tshwane has rejected claims that its 2026-27 budget contains a R2 billion shortfall in employee-related costs, saying the difference reflects normal budget scrutiny rather than an immediate unfunded liability.

What the city says

City spokesperson Lindela Mashigo said the personnel cost planning requirement submitted by Group Human Capital Management was for approximately R15 billion, an increase of about R3 billion from the previous financial year. After the city’s affordability assessment, Group Financial Services approved an employee-related cost budget of approximately R13 billion, using the 2025-26 adjustments budget as the baseline.

Mashigo said the approved R13 billion allocation makes provision for the city’s anticipated employee-related expenditure, and specifically noted provisions of R229 million for the filling of vacancies and R362 million for salary back pay obligations during the 2026-27 financial year.

Difference is a planning gap, not a funding shortfall, city says

According to Mashigo, the gap between the initial departmental requirement and the final approved allocation is the result of the normal budget process of assessment, prioritisation and affordability. He said this difference “should therefore not be presented as a R2 billion salary shortfall.”

Mashigo added that based on actual employee-related expenditure during the 2025-26 financial year and expenditure recorded in the first month of 2026-27, the city has not identified a material risk of overspending on employee costs and that expenditure will be closely monitored.

DA raises alarm over alleged shortfall

The Democratic Alliance’s Tshwane finance spokesperson, Jacqui Uys, had called on Mayor Nasiphi Moya and finance MMC Eugene Modise to explain how the alleged R2 billion salary gap would be addressed, saying the city’s budget was not funded. Uys said the revelation of a R2 billion gap in provision for staff costs “confirms the serious concerns the DA have raised for months.”

Monitoring and next steps

Mashigo said the city’s current assessment does not indicate an inability to meet its salary obligations and that should expenditure trends require additional provision during the financial year, the matter will be addressed through the city’s established budgeting processes, including the adjustments budget process, where appropriate.

“The difference between an initial departmental planning requirement and the final approved allocation should therefore not be presented as a R2 billion salary shortfall.” Lindela Mashigo

The city’s statement was issued in response to public questions about the employee-related provisions in the 2026-27 medium-term revenue and expenditure framework.