Gauteng and Free State Provincial Treasuries' Quarterly Report & Performance

Video The Select Committee on Finance met virtually with the Gauteng and Free State Provincial Treasuries to be briefed on their quarterly performance reports, audit outcomes, and the state of their provincial public entities. The Gauteng delegation presented that its economic and fiscal outlook indicated a projected R1.2 billion deficit for 2025/26, with high spending performance (99%), but continued underperformance in infrastructure delivery. Pressures included a R2.97 billion reduction in the provincial equitable share and outstanding debt from the Gauteng Freeway Improvement Project. Audit outcomes had improved, with 50% of departments and 74% of entities achieving clean audits. However, issues persisted in the health sector, including irregular expenditure, weak consequence management, and excessive acting appointments in chief financial officer roles. Although R8.4 billion in revenue had been collected for 2024/25, early 2025/26 figures were behind target. Municipalities owed R1.3 billion in motor vehicle licence fees, alongside large patient and staff-related debt. The province's strategy was focused on digitisation, debt recovery, and alternative revenue sources. The Free State reported steady fiscal performance, with notable governance gains. The province had collected 26.3% of its R1.2 billion revenue target in the first quarter, and spent 24.6% of its annual budget. Risks included over R1 billion in municipal debt, rising compensation costs, and projected 4.9% overspending by year-end. It outlined economic development initiatives focused on agriculture, tourism, renewable energy, and support for township economies. High youth unemployment (69.4%) and infrastructure constraints were noted, along with governance concerns at the Free State Gambling, Liquor and Tourism Authority. Members welcomed the presentations but raised concerns around weak consequence management and overuse of acting officials, debt accumulation by municipalities and slow revenue recovery, underperformance in infrastructure delivery, and the need for digitised financial systems, capacity building, and improved intergovernmental coordination. There was also a strong call for intensified support to municipalities, better audit accountability, and more agile responses to fiscal pressures.