Johannesburg: Gauteng Finance MEC Nkululeko Dunga has unveiled a comprehensive roadmap to stabilise the province's R179.2 billion budget for the 2026/27 financial year. The MEC held a media briefing this week on the state of the province's finances and a programme of action in this regard. Dunga warned that the provincial fiscus 'does not exist in isolation' and must navigate a global landscape marked by geopolitical instability and rising costs.
According to South African Government News Agency, Dunga highlighted that global developments have direct implications for the people of Gauteng, noting that rising fuel prices increase the cost of public transport, food, logistics, construction materials, and electricity generation, placing further pressure on working-class households and the provincial fiscus itself. On the domestic front, South Africa's economy remains under severe strain, with the South African Reserve Bank estimating a growth of only 1.1% in 2025, which is insufficient to transform the economy, absorb unemployment, and expand the tax base of the State. Unemployment continues to deepen, adding to these challenges.
Dunga emphasised a shift toward radical transparency and accountability in managing public funds, asserting the importance of honesty about the state of provincial finances. He referred to revolutionary leader Amlcar Cabral's principle to 'tell no lies and claim no easy victories,' which must guide public finance management in Gauteng.
One major priority for the Provincial Treasury is eradicating 'accruals', unpaid invoices that stifle small businesses. As of March 2026, provincial accruals stood at R9.3 billion, with nearly half exceeding the 30-day payment legislated timeframe. Dunga outlined plans for a province-wide assessment of accruals, unpaid invoices, and expenditure commitments, along with strengthened intervention measures to restore payment discipline and improve financial controls.
Dunga also addressed the state of municipalities in the province, describing it as one of the most 'serious risks' to the province's finances and developmental trajectory. As of the last financial year, municipalities collectively reported outstanding debtors amounting to approximately R173.3 billion, with additional under-reported debt owed to Eskom and Rand Water. He noted that municipalities face declining revenue collection, escalating creditor obligations, collapsing infrastructure maintenance, and weak governance systems.
In response to these mounting pressures, Dunga presented a programme of action to strengthen State capacity. This includes stabilising provincial finances, intensifying intervention measures through MFMA Sections 138 and 140 financial health assessments, expanding the provincial artisanal training programme, and intensifying interventions aimed at addressing deteriorating provincial infrastructure.
Dunga stressed that the programme of action will be implemented through continuous consultation, coordination, and engagement with provincial departments, municipalities, entities, and stakeholders under the leadership of the Premier of Gauteng. He reiterated the commitment to strengthening governance, rebuilding institutional capacity, improving oversight, and ensuring effective utilisation of public resources to deliver visible developmental outcomes.
The success of public finance management, Dunga concluded, will ultimately be measured by improvements in schools, clinics, roads, housing, transport, municipal services, public safety, and broader living conditions across Gauteng.