Gauteng budget: Wage bill, education & health take budget's lion share

The Gauteng Provincial Government recently tabled a R171 billion budget for the upcoming fiscal year 2025 to 2026, with a strong focus on infrastructure development and job creation. In an exclusive interview with CNBC Africa, Gauteng MEC for Finance Lebogang Maile discussed the economic outlook for the province and the targeted 3% growth rate that they aim to achieve. The budget allocation reflects the province's commitment to addressing key issues such as the wage bill, education, health, and unemployment. One of the critical points raised during the interview was the concern over the wage bill and the additional allocation from the National Treasury to cover the unaccounted-for increase. Despite potential criticisms about the opportunity to reduce costs, Maile emphasized the importance of honoring negotiated agreements and fulfilling financial obligations. The province remains focused on meeting its financial commitments and maintaining a balanced budget. In preparation for the upcoming G20 Summit, the Gauteng Provincial Government has identified infrastructure development as a top priority. Maile highlighted the 13 key priorities outlined by the Premier, which include addressing road maintenance, fixing potholes, upgrading traffic lights, and ensuring reliable water and electricity supply. The budget has been tailored to allocate resources towards these critical infrastructure projects to enhance the province's economic growth and stability. Capital expenditure and liquidity management also featured prominently in the discussion, with a focus on addressing cash flow challenges and managing accruals effectively. While the province faces certain cash flow constraints, Maile assured that they are implementing strategic measures to ensure financial stability and efficient resource allocation. Managing accruals remains a key challenge that the government is actively working to resolve. Unemployment, a pressing issue in Gauteng where the rate stands at 34%, remains a top priority for the provincial administration. Through strategic investments in infrastructure, collaboration with the private sector, and the implementation of an economic plan, the government aims to create employment opportunities and stimulate economic growth. By fostering partnerships with various stakeholders and leveraging national government support, Gauteng is committed to implementing initiatives that will drive job creation and reduce unemployment rates. Looking ahead, the Gauteng Provincial Government is gearing up for the Gauteng Investment Conference scheduled for April 3rd. With a target to attract $300 billion in investments for the current fiscal year and an additional $500 million over the next three to five years, the conference aims to position Gauteng as a favorable investment destination across various sectors. By fostering an enabling environment for investors and addressing regulatory challenges, the government is actively engaging with the private sector to promote economic growth and sustainable development. In conclusion, the Gauteng Provincial Government's budget presentation reflects a strategic and proactive approach to addressing key economic challenges and driving sustainable growth in the province. With a focus on infrastructure development, job creation, and investment promotion, Gauteng is poised to unlock its economic potential and create a conducive environment for business development and prosperity.