Ekurhuleni budget fails to pass as councillors reject proposed tariffs
The party argued that these hikes, combined with broader economic pressures such as rising interest rates and fuel costs, would worsen the cost-of-living crisis.
The City of Ekurhuleni’s 2026/27 municipal budget has once again failed to pass after councillors could not reach the required majority during a show of hands, highlighting deep political divisions within the council.
During the extraordinary sitting held at the OR Tambo Government Precinct in Germiston on June 4, the proposed R71b budget received 96 votes in favour and 105 against, with several abstentions, resulting in its rejection.
According to the legislation, at least 113 councillors had to support the budget for it to pass.
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The outcome has sparked strong reactions from major political parties, each presenting contrasting views on the implications of the failed vote.
The DA in Ekurhuleni welcomed the outcome, stating that it had voted against what it described as a “tariff heist” that would have placed additional financial strain on already struggling residents.
According to the DA, the proposed budget included increases of 11% for water, 8.35% for sanitation, 9% for electricity, and 4% for refuse removal.
The party argued that these hikes, combined with broader economic pressures such as rising interest rates and fuel costs, would worsen the cost-of-living crisis. The DA further maintained that the budget failed to address systemic governance and service delivery challenges within the municipality.
On the other hand, the ANC expressed disappointment at the rejection of what it described as a “pro-poor, people-centred budget.” The party emphasised that the budget was designed to improve infrastructure, accelerate service delivery, and stimulate economic growth across the city.
The ANC also criticised the EFF for aligning with the DA and Freedom Front Plus (FF Plus) in opposing the budget, arguing that this decision undermined the outcomes of extensive public participation processes involving residents, stakeholders, and organised labour.
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According to the ANC, delays in passing the budget could have serious consequences, including setbacks to critical infrastructure projects and challenges in meeting obligations under municipal worker agreements.
The party warned that prolonged delays may negatively impact service delivery, particularly in areas already experiencing infrastructure strain.
Following the failed vote, the MMC for Finance, Jongizizwe Dlabathi, has been instructed to return to the drawing board and revise the budget.
Council has called for a more inclusive and responsive financial plan that better balances affordability with service delivery needs.
While Dlabathi acknowledges that the budget cannot meet every community need within a single financial year, he said the City maintained that it is focused on doing “the basics right.” “Infrastructure demands, particularly roads, remain high across all wards, but the municipality stressed that progress will be incremental.
We are optimistic that the budget that we’ve also allocated, both on energy and water, is realistic because we’ve benchmarked it against what we’ve allocated in the previous year, and more so, the departments are now business units that will generate revenue, and their submission is convincing that we will get the money and we will provide the services,” said Dlabathi.
Furthermore, he said the budget also avoids introducing new large-scale capital projects; instead, the city will prioritise the completion of existing and incomplete projects.
Focus areas include water, energy, electricity, sanitation, roads, and human settlements.
“This approach ensures that the budget remains both realistic and implementable,” he noted.
The revised budget is expected to incorporate input from councillors and stakeholders before being tabled again at a future council sitting.
A new date for its presentation is yet to be announced.
In the meantime, uncertainty remains about the municipality’s financial planning and the potential impact on service delivery timelines, as the city cannot fully implement its programmes without an approved budget.
