Tshwane’s R54.6bn budget draws mixed reactions

There has been mixed reaction to the City of Tshwane’s budget for the 2025- 26 financial year.

Deputy mayor and MMC of finance, Eugene Modise, delivered the budget for the 2025-26 financial year which he said National Treasury had endorsed as credible and fully funded.

Modise described the budget as a turning point and said the draft included an allocation for the capital budget of R2.4 billion and an operational budget of R52.2 billion.

‘Fully funded without borrowing’

His budget also included a total of R7.4 billion grant allocations for operational grants and capital infrastructure through the newly introduced Urban Development Financing Grant.

“It is important to note that this budget has been fully funded without borrowing. While no borrowing is planned for the 2025-26 financial year, this may be reconsidered in future, subject to the city’s financial recovery and improved credit rating,” he said.

Modise’s proposed tariff adjustments include electricity tariffs to rise by 10.1%, below the 11.32% bulk tariff increase from Eskom, while water charges will increase by 13%, lower than Rand Water’s 15.13% hike.

ALSO READ: Here is how Tshwane will be spending its R54.6 billion budget

Sanitation tariffs will increase by 6%, followed by waste removal tariffs which will rise by 4.6%.

‘Nothing new’

Republican Conference of Tshwane councillor Lex Middelberg didn’t believe Modise’s claim that Treasury had endorsed the budget.

“Treasury doesn’t endorse budgets. The budgets do not make allocations for the release of R29 billion on creditors that have heaped up from previous years. Middelberg said the budget as a whole was an adjusted version of budgets of previous financial years.

“There’s nothing new in there, the spending patterns in the city do not change. Same old, same old,” he said.

Praise from ActionSA

Action SA leader Herman Mashaba welcomed the tabling of the first fully funded budget since 2022, led by one of his own, Nasiphi Moya.

He also welcomed the R780 million allocated to economic development and spatial planning, saying it aligned with the city’s economic revitalisation strategy, which aims to attract over R17 billion in investment and create 80 000 jobs.

ALSO READ: The state of the capital: Three major problems Tshwane promises to fix

“ActionSA believes this budget acknowledges the severe infrastructure challenges inherited from years of chronic mismanagement and underfunding, which brought the city to the brink of collapse and represents a commendable turning point through targeted investment.”

Mashaba said the party was proud of the City of Tshwane’s remarkable progress in achieving the goals set out in its turnaround strategy.

DA rejects budget

DA Tshwane spokesperson for finance Jacqui Uys said her party would not support the new budget.

Uys said the budget put the responsibility of financial rescue instability onto residents, treating them like cash cows.

“The DA maintains that the city must increase the section of property value not included in rates and taxes to R450 0o0 to bring relief to your pockets. Instead of assisting poor households who cannot afford almost R500 per month for waste removal, the ANC-led City of Tshwane has opted to introduce a punitive tax of almost R200 on these households if they choose not to use the city’s services,” she said.

NOW READ: City of Tshwane says overtime cap won’t stall emergency services