The tabling of this Budget takes place during an important month in the calendar of the republic – Human Rights Month. During this month, we are reflecting on the country’s constitutional democracy, promoting human rights, and commemorating the struggle against apartheid. The theme speaks to “Making Human Dignity Real”, which for us as civil servants, means ensuring that the fundamental rights that are enshrined in the Bill of Rights exist not on paper, but as a practical and lived reality that is felt in our communities.
It is for this reason that the theme for the 2026/2027 Budget of the Gauteng Provincial Government is “The audacity of hope: A collective commitment to building a resilient Gauteng.”
The audacity of hope is about the courageous and stubborn refusal to succumb to cynicism, despair or fear in the face of daunting challenges. Collective commitment is about bringing all stakeholders together in the quest to build and strengthen an economy that works for the people of Gauteng. Today we table a budget that demonstrates our audacity to hope and our stubborn refusal to accept that internal and external factors are insurmountable.
ECONOMIC REVIEW AND OUTLOOK
Turning to the economic outlook, The National Budget projected that the economy will grow by 1.6 percent this year, increasing to 1.8 percent in 2027 before reaching 2 percent in 2028.
Gauteng remains the engine of the country’s economy, driven by, among other sectors, finance, trade, and transport. The province’s annual Gross Domestic Product by Region (GDP-R) amounts to more than R2.4 trillion. Economic projections in the medium-term point to steady recovery with provincial economic growth expected to reach 2.1 percent in 2026 – significantly above the national average.
Gauteng is positioned to continue increasing the number of jobs created in the province. In
2025, we created over 250 000 jobs in the province, with the second quarter of 2025 seeing a creation of 95 000 jobs – the highest number of jobs created by a single province in South Africa. There are currently just over 6 million people employed in Gauteng, the majority of these are youth and women. Trade and construction were among the leading sectors for job creation, demonstrating that despite the difficult climate we find ourselves in, businesses continue to have confidence in the capacity of the province to turn things around. This is not enough, more still needs to be done to create job opportunities and promote the inclusion of historically excluded groups, as part of redressing the historical injustices.
GAUTENG INVESTMENT CONFERENCE
Our approach to growth is rooted in the quest for re-industrialisation and the deliberate inclusion of township and local enterprises in the mainstream economy. To give practical expression to these commitments, we hosted the inaugural Gauteng Investment Conference (GIC) in April 2025. The results were significant. The conference attracted over 1800 participants and secured R312.5 billion in investment pledges.
As of February this year, 28 percent of the investment pledges secured in 2025 have already been converted into projects and are being implemented. Eighteen out of sixty projects are now in a roll-out stage. These projects are to the value of just over R80 billion which will unlock this into the real economy. This government continues to demonstrate a clear political will and commitment to transform the economy, through attracting tangible investments that amount to job opportunities to secure a better life for all.
STRENTHENING INFRASTRUCTURE SERVICE DELIVERY
On infrastructure, we agree with the view that was reiterated in the National Budget that infrastructure investment is the base for long-term growth, improved service delivery and job creation, and that government is shifting spending toward growth-enhancing infrastructure.
We understand infrastructure to be an economic growth enabler; goods and services must seamlessly move between businesses and consumers.
In the 2026 MTEF, a total budget of R36.4 billion is allocated for the infrastructure
programme. Of this allocation, R26.2 billion is from Conditional Grants and R10.2 billion from the Provincial Equitable Share. Departments of Health, Education, Human Settlements and Roads and Transport and Education received an allocation of R34.4 billion whilst the departments of Sports, Arts, Culture and Recreation, Infrastructure Development and Economic Development Social Development, Agriculture and Environment received a total funding of R2.1 billion.
Of this allocation R22.7 billion is for increasing the existing infrastructure capacity in
response to an increasing demand for services whilst the remaining R13.8 billion funding made available to improve the condition of the existing infrastructure and activities undertaken to support the delivery of infrastructure. We also call on communities to work with government, in protecting these infrastructure investments against vandalism and sabotage. As citizens, we have a shared responsibility and patriotic duty to aid law enforcement authorities to halt the criminal acts of vandalism and public infrastructure sabotage; this includes protecting water, electricity and railway infrastructure services amongst others.
PUBLIC PRIVATE PARTNERSHIPS (PPPs)
In a constrained fiscal environment, Public-Private Partnerships (PPP) remain a critical instrument in this regard, enabling government to mobilise private sector expertise,technology and capital while ensuring value for money and the efficient delivery of infrastructure.
We welcome the reforms introduced by National Treasury through the amendments to Treasury Regulation 16, which came into effect in June 2025. Furthermore, the Municipal 2PPP regulations are also expected to be finalised by 30th June 2026, enabling local government to participate more effectively.
The Gautrain remains a flagship example of a successful Public-Private Partnership in our province. As the current concession agreement approaches its conclusion in March 2026, we are advancing the procurement process to appoint a new concessionaire to operate,maintain and modernise the Gautrain system under a renewed PPP arrangement.
By the end of the current concession period, the Gautrain will become a fully paid-up state asset valued at approximately R45 billion, placing the province in a stronger position to maximise the long-term economic and mobility benefits of this strategic investment.
Beyond the Gautrain, we will continue to explore opportunities to expand the use of Public Private Partnerships across other strategic infrastructure sectors. Gauteng Provincial Network, Provincial Data Centre and the Scholar Transport, just to mention a few, are currently under consideration for delivery through the PPP model. This government reassures citizens and commits that Gautrain will continue to be ran well and efficiently.
2026 MTEF BUDGET ALLOCATIONS
Let me reflect on the Budget, which is focused on addressing the frontline services and responding to the provincial priorities as outlined in the Gauteng Medium Term Development Plan and the G13 interventions.
Over the 2026 Medium Term Expenditure Framework (MTEF), the Gauteng Provincial Government budget will amount to well over half a trillion Rand – R549.3 billion, of which R179.2 billion, R182.4 billion and R188.2 billion are respectively allocated to the 2026/2027, 2027/2028 and 2028/2029 financial years.
The budget that we are presenting today increases by R3.6 billion from 2025/2026 to
2026/2027, representing growth of 2 percent year-on-year while over the 2026 MTEF it grows by 5.2 percent.
These funds are allocated as follows:
- The Gauteng Office of the Premier is allocated R1.6 billion in 2026/2027 or a total of R4.7 billion over the MTEF, to drive implementation of the 2024-2029 MTDP. The focus remains on tackling crime, growing the economy and investing in education and skills development.
- To strengthen democracy and reinforce accountability, the Gauteng Provincial
Legislature receives a total of R1.4 billion in 2026/2027, increasing to R3.3 billion over the MTEF, to support law-making, oversight, and public participation. - The Gauteng Department of Economic Development receives R1.8 billion in the 2026/2027 financial year, rising to R4.9 billion over the MTEF, to support the work of the Gauteng Growth and Development Agency and Gauteng Enterprise Propeller, with amongst other things, a strong focus on Special Economic Zones development.
- The Gauteng Department of Health is allocated a total of R70.3 billion in 2026/2027, increasing to R218.6 billion over the MTEF, to strengthen the public health system, expand access, and improve the quality of care. The funding will support maternal and child health, the Ideal Clinic and Ideal Hospital programmes and improved emergency
medical response times. - The Gauteng Department of Education is allocated R70.9 billion in the 2026/2027financial year, increasing to R221.8 billion over the MTEF to improve the Early Childhood Development Strategy, learner performance programmes such as Secondary School Improvement Programme, school safety initiatives, pro-poor interventions including nutrition and scholar transport, Schools of Specialisation, and inclusive education through special schools.
- To support vulnerable residents and reduce poverty, the Gauteng Department of
Social Development receives R5.6 billion in 2026/2027, increasing to R17.2 billion over the MTEF The funding will go towards skills development for vulnerable groups, the provincial homelessness strategy, food security interventions, Bana Pele, child and youth care centres, community prevention services, substance abuse disorder treatment, aftercare services, and upgrades to state-owned facilities. - A total of R680.5 million is allocated to the Gauteng Department of Cooperative Governance and Traditional Affairs in 2026/2027, rising to R1.9 billion over the MTEF.
These resources will be used to strengthen disaster management capacity, community development workers, the e-indigent register, municipal metering interventions and EPWP support for employment creation initiatives and stabilising energy supply. - The Gauteng Department of Human Settlements is allocated R5.5 billion in 2026/2027 and R16.6 billion over the MTEF to upgrade informal settlements, providing interim sanitation, delivering mega housing projects and Breaking New Ground units.
- To build an integrated, safe, and affordable transport system, we are allocating a total of R10.2 billion in 2026/2027 and R27.8 billion over the MTEF to the Gauteng Department of Roads and Transport to improve transport infrastructure, strategic road upgrades and rehabilitation linked to Special Economic Zone access.
- The Gauteng Department of Community Safety receives a total of R2.3 billion in 2026/2027, rising to R7 billion over the MTEF to protect communities and strengthen policing oversight, school safety, road safety, and the fight against gender-based violence and femicide (GBVF). This budget includes R159.6 million allocated for the training and uniform of Traffic Officers and Peace Officers in line with the recommendation of the report from the Public Protector.
- The Gauteng Department of Agriculture and Rural Development is allocated R742.6 million in 2026/2027, increasing to R2.2 billion over the MTEF, to strengthen food security and build competitive agricultural value chains. This budget includes a targeted R63.9 million funding to contain Foot and Mouth Disease through vaccination and surveillance.
- The Gauteng Department of Sport, Arts, Culture and Recreation will receive R1billion in 2026/2027 and R3.2 billion over the MTEF to support school sport and school arts programmes, community-led social cohesion initiatives and dialogues, the Premier’s performing arts programme, and assistance to municipalities for library services that promote reading, learning, and a sense of belonging.
- To expand ICT connectivity and modernise service delivery, we are allocating R1.9
billion in 2026/27 and R5.2 billion over the MTEF to the Gauteng Department of e-Government. The funding will support the Gauteng Provincial Network, the expansion of township Wi-Fi hotspots and the installation of CCTV to improve safety in township communities. - The Gauteng Provincial Treasury will receive R788.4 million in 2026/2027 and R2.5billion over the MTEF to support infrastructure planning and delivery capacity, the deployment of municipal finance experts to strengthen municipal financial management, and supply chain management reforms.
- The Gauteng Department of Infrastructure Development is allocated a total of R3.7billion in 2026/2027 financial year, with a cumulative total of R10.9 billion over the MTEF,to support provincial infrastructure delivery and maintenance, CBD and precinct revitalisation, office consolidation, EPWP and National Youth Service work opportunities.
- To protect natural assets and build a more resilient Gauteng, we are allocating a total of R646.6 million in 2026/2027, increasing to R2 billion over the MTEF to the Gauteng Department of Environment. This funding will support upgrades to air quality monitoring, feasibility work for an integrated waste management facility, recycling infrastructure and buy-back centre upgrades.
CONCLUSION
In conclusion, let me say the social sector – Health, Education and Social Development – collectively account for an average of 83 percent of the total budget over the MTEF. It is for this reason that we are determined to anchor discipline in how we manage the resources of the province, the bulk of which is allocated to services that our people engage with daily.
We must be honest about our fiscal reality and the nature of obligations that significantly narrow our room to manoeuvre. For example, the province has already paid R9.3 billion against the principal e-Toll debt of R20 billion, and R4.6 billion is required for the next instalment in June 2026. In the last two years of the 2026 MTEF, a further R6.2 billion must be paid. These are consequential amounts that will have a significant implication on how we plan and execute.
We must protect front-line services, but we must also demand better performance from every rand through targeted and responsible savings as an ongoing feature as we strive to close leakages and root out inefficiencies.
This budget is sensitive to the lived realities of our constituencies, it is a budget of uplifting human dignity, the restoration of law and order; and to protect the most vulnerable in our society.