The City of Johannesburg has tabled an R89.4 billion budget for the 2025/2026 financial year, with Finance MMC Margaret Arnolds emphasizing a focus on fixing the municipality’s troubled billing system and delivering services to underserved communities.
The budget, described as “pro-poor and pro-growth,” comes as the South African Reserve Bank (SARB) cuts interest rates by 25 basis points, lowering the repo rate to 7.25% and the prime lending rate to 10.75%. However, concerns remain over rising living costs, particularly with an impending fuel levy hike set for June 2.
Addressing Billing and Service Delivery
MMC Arnolds acknowledged longstanding frustrations with Johannesburg’s billing system, which has been plagued by inaccuracies and inefficiencies. “The people spoke—they said they do not trust our billing system,” Arnolds stated during a media briefing. “We are fixing it, and that will contribute to the city’s growth.”
The city has allocated R3 billion to address historical service backlogs in neglected communities, with additional funds directed toward water, electricity, and road infrastructure. Arnolds also highlighted the Extended Social Package (ESP), aimed at easing financial burdens on vulnerable groups, including female-headed and child-headed households.
Auditor-General’s Concerns and Accountability
Despite these commitments, Johannesburg again failed to secure a clean audit from the Auditor-General (AG), with unauthorized expenditure reaching R2.76 billion—the highest among metros. Only Cape Town achieved a clean audit.
Arnolds admitted to shortcomings in financial management but assured that consequence measures were underway. “We take the AG’s findings seriously,” she said. “Disciplinary actions are being implemented, and we are strengthening oversight to prevent misuse of public funds.”
Economic Challenges and Growth Prospects
The budget was crafted around SARB’s initial growth forecast of 1.7%, but the central bank recently revised its projection down to 1.2%. Arnolds remained optimistic, stating that the city would “navigate smartly” through economic constraints while maintaining service delivery.
G20 and Long-Term Vision
With Johannesburg set to host the G20 summit, Arnolds emphasized that infrastructure and governance reforms were not just for the event but for long-term sustainability. “We are rebuilding Johannesburg as a world-class African city—not just for visitors, but for our residents,” she said.
As the city moves forward, all eyes will be on whether these financial and operational reforms translate into tangible improvements for its six million residents.
