Johannesburg tables R87.8b budget proposal for 2025/26
The city calls on residents to speak up as the R87.8b budget draft reveals massive infrastructure focus, new tariffs, and push for fairness.
The City of Johannesburg has unveiled its draft 2025/2026 integrated development plan (IDP) and budget, projecting a total spend of R87.8b for the upcoming financial year. This was presented by Environment and Infrastructure Services MMC and acting Executive Mayor Jack Sekwaila during a community engagement session held on April 9 at the Danie van Zyl Recreation Centre in Newlands.
With infrastructure renewal and service delivery at the core, the budget prioritises investment in critical municipal services, while aiming for long-term financial sustainability. Sekwaila outlined the city’s commitment to revamping aging infrastructure and investing in transformation zones and underdeveloped communities.
“Our key investment areas include roads, power, water, and sewerage systems, especially in transformation zones and economically deprived areas,” said Sekwaila.
Read more: VOX: Residents speak out on Citys IDP and budget plans
Of the R87.8b budget, R80.5b (91.7%) is allocated to operating expenses – funding day-to-day service delivery – while R7.3b (8.3%) is earmarked for capital projects such as infrastructure upgrades and asset renewal.
To support infrastructure-heavy departments, R1b from the 2025/26 medium-term revenue and expenditure framework (MTREF) will go to City Power, Johannesburg Water (JW), Johannesburg Roads Agency (JRA), and Pikitup. An additional R1b from the city’s cash reserves is planned for 2027/28, reflecting a shift towards self-funding and reduced reliance on borrowing.
Top-funded departments in the infrastructure sector include JW (R1.63b), City Power (R1.62b), Human Settlements (R1.48b, reducing to R794m), and JRA (R798m rising to R1.06b). Moderate increases are also planned for Pikitup and public safety services, aimed at improving waste collection, law enforcement, fire safety, and healthcare access.
Proposed tariff adjustments and new policy amendments
As part of the three-year budget plan, residents can expect several proposed tariff hikes, particularly in water and sanitation services.
The proposed increases across major services for 2025/26 are as follows:
• Electricity: 12.41%
• Water: 13.9%
• Sanitation: 13.9%
• Property rates: 4.60%
• Refuse removal: 6.60%
Subsequent years will see moderate hikes, with increases ranging between 4.5% and 6.6%.
Also read: Increased city tariffs across the board stretch residents budgets to breaking point
Despite rising tariffs, the city has committed to maintaining certain relief measures. The free basic water allocation of 6kL per household remains unchanged, and no increases are planned for availability charges on both prepaid and conventional meters.
A notable policy proposal includes the introduction of a new ‘non-maintenance penalty tariff’, targeting poorly maintained properties. Owners of such properties could pay six times the standard residential rate. The aim is to encourage upkeep and boost investment in neglected areas.
To support Johannesburg’s aging population, the city is also proposing to raise the income thresholds for pensioner rebates by 4.6%, allowing more residents to qualify for relief on property rates. The lower qualifying income will move from R12 475 to R13 040, while the upper limit will increase from R21 383 to R22 367.
The market value thresholds for pensioner homes remain unchanged: R1.5m for those aged 60–69, and R2m for those aged 70 and above.
Sekwaila concluded the session by reaffirming the city’s vision of a more equitable and responsive Johannesburg. “We are building a city where everyone can participate, contribute, and thrive – through partnerships and shared responsibility.”
The draft budget and IDP remain open for public comment until they are officially tabled in council in May. Residents are encouraged to participate and help shape the future of Johannesburg.
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