The Gauteng provincial treasury has refuted claims that it faces bankruptcy and will have a deficit of R6 billion by June 2025.
The Treasury said in a media statement on Tuesday that the reports in the media about the potential bankruptcy and the R6 billion shortfall by June 2025 are “unfounded”.
“The Gauteng provincial treasury has noted, with great concern, articles in the media
making claims about the alleged imminent bankruptcy of the Gauteng provincial government and a R6-billion shortfall by June 2025,” said Castro Ngobese, the spokesperson for finance and economic development MEC Lebogang Maile.
He said the assertions were not new and had previously been refuted.
Ngobese said for the 2024-2025 financial year (from April 2024 to March 2025), the provincial government received a budget of about R169-billion.
R53.9- billion is still available to be spent
He said that at the end of November 2024, overall expenditure for the provincial government stood at about R115-billion, or 68% of the adjusted budget of R169-billion, leaving R53.9-billion available to be spent until the end of March 2025.
Ngobese said this expenditure is mainly driven by education and health departments, which account for 80% of the total expenditure.
Despite conceding that Gauteng’s e-toll debt of R20.1-billion was having a negative impact on the province’s already stretched and limited resources, Ngobese said Gauteng’s service delivery priorities will not be negatively impacted as the province works on servicing the debt.
“The matter of possible bankruptcy, even in the current financial year, should be refuted,” Ngobese said.
“Gauteng’s budget of R169-billion is substantial, but its impact depends on how wisely it is
spent.
“Departments and entities must adopt a disciplined approach to spending, ensuring
that every rand translates into meaningful progress. Efforts to improve spending efficiency are already underway.”
Gauteng is not facing imminent bankruptcy
He explained further: “I wish to once more reiterate that while the provincial government is operating under a strained financial environment, the province is not facing imminent bankruptcy.
“Members of the media are obligated to report the truth and to do so with an appreciation of the impact that untrue and subjective reporting can do to provincial and national economies.
“Beyond the panic that such reports can cause to residents of Gauteng, they have the potential to also impact businesses and diminish investor confidence at a time when the provincial government is working hard to strengthen the provincial revenue.
“We look forward to more engagements with the media on the work of the Gauteng provincial government and the Gauteng provincial treasury, in particular.
“This is very important as we draw closer to the 2025 Budget that will articulate the financial and economic future of a Gauteng that is the nerve centre of the regional and national economy.”
