Gauteng govt denies claims it's on verge of bankruptcy
On Tuesday, Gauteng Finance MEC Lebogang Maile told reporters that while Gauteng was operating under a strained fiscus environment, it was not facing imminent bankruptcy.
Gauteng Finance MEC Lebogang Maile. Picture: @GautengProvince/X
JOHANNESBURG - The Gauteng government has denied claims that it’s on the verge of bankruptcy.
Media reports suggest the provincial government had a R6 billion shortfall, which it has to cover before the end of June this year.
At a media briefing in Johannesburg on Tuesday, Gauteng Treasury labelled the reports as misleading.
During the presentation of the mid-term budget late in 2024, Gauteng Finance MEC Lebogang Maile revealed the province would record a R6 billion cut in the 2025 / 2026 financial year.
READ: Gauteng govt defends its underspending as Treasury takes back R6bn of budget allocation
He said this was due to Gauteng’s decline of the national population share which has resulted in National Treasury decreasing its provincial equitable share.
He said the budget for next year is still yet to be finalised to account for the cuts.
"I wish to once more reiterate that while the GPG [Gauteng Provincial Government] is operating under a strained fiscus environment, the province is not facing imminent bankruptcy. Members of the media have an obligation to report the truth, and to do so with an appreciation of the impact that untrue and subjective reporting can do to the provincial and national economy."
Meanwhile, National Treasury said allocations to provinces would be finalised in February.