MEC Lebogang Maile
By Karabo Marifi
Only four municipalities tabled funded budgets, says MEC Maile in R172.3 billion Budget Speech 2.0, as the Gauteng Provincial Government sharpened its focus on fiscal discipline, transparency and supply chain reform in a bid to restore public trust and improve service delivery. Gauteng MEC for Finance and Economic Development, Lebogang Maile, tabled what he called Budget 2.0 for the 2025/26 financial year in the Gauteng Provincial Legislature on Tuesday, stressing the urgent need to correct municipal financial mismanagement.
The total provincial budget stands at R172.3 billion—an increase of R886.6 million compared to the earlier version presented in February. Maile said this adjustment reflects not just technical shifts in allocations but an intensified effort to instil sound financial discipline at all levels of government.
Raising a red flag, Maile expressed “serious concern” over the fact that only four of Gauteng’s municipalities had tabled funded budgets. The remaining majority submitted unfunded budgets, which he described as damaging to fiscal credibility and out of step with provincial development goals. “We have stated repeatedly that fiscal discipline requires that municipalities maintain fiscal positions that are consistent with macroeconomic stability and sustained economic growth,” he warned.
To address this, the Gauteng Provincial Treasury has begun conducting detailed budget assessments on the tabled and draft budgets of municipalities. These interventions are designed to support municipalities in moving from unfunded to funded positions, especially through reprioritisation of expenditure, identifying efficiency gains, and aligning their budgets within realistic fiscal ceilings.
On the revenue side, Maile revealed that municipalities, with assistance from the Treasury, had embarked on cost-reflective tariff assessments to determine whether the rates charged for services such as electricity, water and sanitation covered the actual cost of delivering those services. This work is central to long-term financial sustainability at the local level.
Beyond municipal budgeting, Maile placed strong emphasis on good governance, stating that the health of the province’s finances is closely linked to how well supply chain management (SCM) is executed. He called SCM “the most critical component” supporting service delivery in Gauteng.
However, current SCM systems face numerous challenges. According to Maile, these include irregular expenditure, incomplete infrastructure projects, legal disputes disrupting procurement processes, excessive accruals, and late payments to service providers. He warned that such inefficiencies undermine public confidence and harm small, medium and micro enterprises (SMMEs), which rely heavily on government contracts to survive.
A provincial SCM capacity assessment uncovered serious skills gaps, especially in contract and project management. While many employees hold relevant graduate qualifications, Maile said there were too many under-skilled personnel handling critical procurement processes like Requests for Quotations (RFQs). To resolve this, the province is working on a new recruitment and placement strategy that will align staffing with actual capacity needs in all SCM units.
To modernise the SCM environment, digitisation will be a key tool. Maile announced plans to roll out an advanced e-procurement system that will ensure all provincial tenders are received and evaluated electronically. “This digitisation is crucial if we are to stem the tide on inefficient SCM processes,” he said. The province has begun working with the Gautrain Management Agency to adopt the procurement system solution already used by the agency.
The theme of transparency ran throughout Maile’s budget address. He explained that efficient and accountable financial systems are not just about internal controls, but about restoring public confidence and creating an inclusive provincial economy. One of the major initiatives under way is the development of a Market Research Price Data Solution—a pricing database that will guide government departments on what constitutes fair market value for common goods and services.
This initiative aims to address a recurring challenge where government is often overcharged by suppliers. Maile described the move as “a direct intervention to eradicate the age of disproportionate pricing by suppliers,” ensuring value-for-money and helping accounting officers make data-driven budgeting and contracting decisions.
Timeous payment of suppliers, especially township businesses and SMMEs, is also a key priority for the Gauteng Provincial Government. Maile reaffirmed the commitment to settle all payment obligations within 30 days—15 days for SMMEs, and just 10 days for township-based enterprises. “This is not simply a matter of SCM efficiency, but an intentional approach towards transforming the economy by making it inclusive and supporting communities on the margins,” he said.
Maile also highlighted the government’s uncompromising stance against corruption, stating that the new systems and reforms are designed to eliminate human interference and manipulation. He strongly affirmed that “no business in Gauteng should have to pay an incentive to participate in the economy – be it to provide services to the state or to receive payment for services rendered.”
At the heart of Budget 2.0 is a commitment to fairness, inclusivity and effectiveness in government spending. By reinforcing the principles of transparency and accountability, Maile said the Gauteng Provincial Government is taking concrete steps to enhance its economic development agenda, while addressing the persistent service delivery failures rooted in poor financial planning and weak procurement practices.
The MEC noted that this is a pivotal moment for the province. Without correcting the structural inefficiencies in municipal finances and procurement systems, the vision for Gauteng to become a driver of national economic recovery cannot be achieved. “We cannot have macroeconomic stability if the majority of municipalities are unable to present a funded and credible budget. We must prioritise capacity, compliance, and modernisation,” he emphasised.
He also pointed to the link between efficient financial management and the broader developmental outcomes the province is aiming to achieve. Infrastructure rollouts, youth employment initiatives, housing projects, and safety programmes all rely on the foundation of a clean and functional public financial system.
In closing his speech, Maile urged municipalities, departments and public entities to fully align with the new standards being implemented. He made it clear that the Provincial Treasury will continue to monitor, support and, where necessary, intervene to ensure compliance with fiscal norms. “We are strengthening the backbone of Gauteng’s governance systems, not just for efficiency, but for impact,” he concluded.
The Gauteng Budget 2.0 comes at a time when national discussions around public financial management, local government viability, and procurement reform are gaining momentum. By focusing on systemic change and clear accountability mechanisms, Maile’s approach signals a departure from the piecemeal strategies of the past.
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