The Gauteng provincial government has officially rejected mounting media speculation about its financial stability, asserting that it is not on the brink of bankruptcy. Finance MEC Lebogang Maile addressed the press in Johannesburg on Tuesday, announcing the province’s commitment to fulfilling all financial obligations amid an environment of fiscal restraint.
Maile’s briefing comes in the wake of persistent concerns raised by critics over the province’s financial health, which has been under scrutiny since the start of the sixth administration. The Finance MEC reiterated that, while operating under stringent resources, there is no imminent risk of bankruptcy for Gauteng, which boasts a substantial budget of R169 billion.
“The matter of possible bankruptcy, even in the current financial year, should be refuted. Gauteng’s budget is substantial, but its impact depends on how wisely it is spent,” Maile stated. He stressed the importance of a disciplined approach to spending across provincial departments and institutions.
To enhance fiscal responsibility, several reforms are currently being implemented, aimed at balancing competing priorities within the provincial budget. “Efforts to improve spending efficiency are already underway, which includes standardising pricing for frequently procured items and introducing a comprehensive raft of practice notes that reinforce fiscal discipline, eliminate wastage, improve accountability, and enhance the province’s ability to meet its development goals,” Maile elaborated.
Maile strongly urged media professionals to report accurately, cautioning against the potential negative impact of misleading narratives. “Members of the media have an obligation to report the truth, appreciating the effect that subjective reporting can have on the provincial and national economy. Such reports create panic among Gauteng residents and can diminish investor confidence, especially as we work hard to strengthen provincial revenue,” he highlighted.
The government has placed significant emphasis on maintaining fiscal integrity. Maile pointed out that unauthorised, fruitless, and wasteful expenditure is at an all-time low as the provincial administration continues to review and cut unnecessary expenses.
Despite challenges presented by opposition parties, notably the Democratic Alliance (DA), who predicted that the government would struggle to pass budgets, Maile confirmed that the administration has been able to navigate fiscal challenges and maintain a positive trajectory. “We have taken opposition parties into confidence on all the major issues,” he asserted.
As Gauteng prepares for the 2025 Budget, Maile expressed optimism about the province’s financial and economic future, signifying its role as the nerve centre of the regional and national economy. The provincial government looks forward to engaging more with the media to ensure transparency and clarity regarding its fiscal strategies and plans.