Issued by Ismail Joosub on behalf of the FW de Klerk Foundation on 28/03/2025

The FW de Klerk Foundation proudly attended the Post-Gauteng Budget Speech Breakfast on 19 March 2025. This event provided a platform for stakeholders to engage with the recently tabled Gauteng Provincial Budget for the 2025/26 financial year, presented by Finance and Economic Development MEC, Mr Lebogang Maile. The gathering aimed to dissect the budget’s implications for the province’s economic trajectory and service delivery commitments. MEC Maile unveiled a comprehensive budget totalling R527,2 billion for the Medium-Term Expenditure Framework (“MTEF”), with allocations increasing from R171,5 billion in 2025/26 to R180,5 billion by 2027/28. This fiscal plan underscores the Gauteng Provincial Government’s dedication to fostering inclusive development and enhancing service delivery across critical sectors.

Key allocations within the 2025/26 budget include:

• Education: R69,6 billion to enhance access to quality education and early childhood development, focusing on inclusivity and improved outcomes for vulnerable groups;
• Health: R66 billion to modernise healthcare infrastructure and improve service delivery, particularly in underserved communities; and
• Economic Development: R1,6 billion to promote investment and develop economic infrastructure, particularly in townships and peri-urban areas.

Representing the FW de Klerk Foundation at the event, Ismail Joosub, Manager of Constitutional Advancement, expressed concerns regarding the budgetary allocations, particularly the disparity between funding for economic development and other sectors. Joosub noted the significant discrepancy between the R1,6 billion allocated to economic development compared to the R69,6 billion for education and R66 billion for health. He questioned how the provincial Treasury justified such a limited allocation for economic development, given its crucial role in sustaining long-term funding for essential services.

Joosub emphasised that Gauteng, as South Africa’s economic hub, requires substantial investment in economic development to stimulate growth, create jobs and ensure the sustainability of essential services and further questioned how the province expects to achieve these objectives with such limited resources allocated to economic development. In response, MEC Maile highlighted that the Department of Economic Development functions primarily as a facilitator of economic growth rather than a direct driver. He cited key projects such as the Tshwane Special Economic Zone and the OR Tambo Airport Industrial Development Zone as evidence of the province’s commitment to creating a conducive environment for investment. The MEC also pointed out that economic activities are integrated into various sectors, including infrastructure development, and that the R1,6 billion allocation does not diminish the province’s dedication to economic advancement.

The FW de Klerk Foundation acknowledges the complexities inherent in budgetary allocations and the necessity of balancing immediate social needs with long-term economic strategies. However, the Foundation urges the Gauteng Provincial Government to reassess its funding priorities to ensure that economic development receives adequate investment. A robust and well-funded economic development strategy is essential to drive sustainable growth, generate employment opportunities and secure the resources needed for comprehensive social services. The Foundation remains committed to engaging constructively with provincial authorities and other stakeholders to promote policies that uphold constitutional values and foster socio-economic development for all citizens.