City of Tshwane councillors photo by at council meeting Dimakatso Modipa
Cllr Nasiphi Moya
Executive Mayor of Tshwane
The Tshwane Multiparty Coalition Government has, today, tabled its first Draft Budget for the 2025/26 financial year for public consultation.
This Draft Budget sets out a clear and strategic financial plan to reinforce service delivery, promote economic growth, and maintain long-term fiscal stability for a city that has gone
without these elements for far too long.
In doing so, this Coalition Government is proud to announce that it has tabled the first fully-funded Draft Budget since the approval of the 2021/22 Budget in May 2021.
This is consistent with the commitment we made in October 2024 when we took
office.
The Draft Budget is guided by the six strategic priorities of the administration:
1.Financial Stability & Revenue Enhancement.2.Infrastructure Development & Service Delivery Acceleration.
3.Economic Revitalisation & Investment Attraction.
4.Safe & Clean City.
5.Social Services & Community Well being.
6.Strengthening Governance & Customer Care.
These six principles also guide the Draft Integrated Development Plan (IDP) for the 2025 – 2030 cycle that has also been tabled for public consultation.
Jointly, this Draft Budget and Draft IDP have been carefully designed to balance the City’s financial recovery with the growing demands of its residents while also ensuring that essential municipal services are delivered effectively and efficiently.
Despite ongoing economic challenges, the City remains committed to prioritising
infrastructure investment, improving financial governance, and ensuring that all communities are represented in the budget.
To that end, the 2025/26 Tshwane
Budget is structured as follows:
2025/26 Operating Expenditure: R52.3 billion.
In the 2025/26 financial year, we have taken important steps to reduce contracted services as we work to build internal capacity.
The following reductions have been made:
• R70 million reduction in watchmen services which has been reprioritised to building internal security capacity;
• R70 million reduction in the rental of refuse removal vehicles which has
been reprioritised to allow for the purchasing of our own refuse removal fleet;
• R70 million reduction in contracted water tankers which has been reprioritised to allow for the purchasing of our own water tanker fleet.
The 5% reduction in contracted services compared to the 2024/25 Adjustments
Budget marks an important step to reduce the City’s current reliance on contracted services in favour of building internal capacity.
A total of R300 million has also been set aside for the filling of critical vacancies to improve service delivery.
2025/26 Capital Expenditure: R2.4 billion.
The proposed capital budget for 2025/26 is R2.4 billion, which increases to R3.2
billion by the 2027/28 financial year.
The following notable allocations have been made in the draft 2025/26 capital budget:
• R482 million allocated to Electricity (Prepaid meters, new connections,
substation upgrades).
• R579 million allocated to Roads and Transport (BRT infrastructure, road
resurfacing, flood mitigation).
• R515 million allocated to Water and Sanitation (Reservoir extensions,
wastewater treatment upgrades).
• R466 million allocated to Human Settlements (Bulk services, stormwater
drainage, access roads).
These allocations are a clear demonstration that the City, while exercising financial prudence, remains intent on ensuring that critical services are still provided to the Tshwane residents.
Rates and tariffs
In approaching the rates and tariffs for 2025/25, the City has done everything
possible to keep increases in line with inflation while seeking to minimise the impact of the increases from both Eskom and Rand Water.
Therefore, this Draft Budget proposes the following tariff adjustments:
• Property rates: -4% (Reduced to mitigate increased property values in the new General Valuation Roll)
• Electricity: +12% (Less than Eskom’s 12.74% increase).
• Water: +13% (Less than Rand Water’s 15.3% increase).
• Sanitation: +6%
• Refuse Removal: +4.6%
• City Cleaning Levy: A new fixed charge of R185 p/m for those who make
use of private refuse collection.
Social and community support
To give effect to Priority 5 (Social Services & Community Well-being) we have
expanded support for our most vulnerable residents through a “Basic Basket of
Services” aimed at alleviating the cost of municipal services.
Specifically:
For 2025/26 the deemed indigent threshold has been revised upward from
R150,000 to R250,000 under the new General Valuation Roll.
This expansion marks a vital step towards broadening access to essential relief, ensuring that more households in need receive the required support.
Further to this, we are taking steps to expand access to primary healthcare.
The Draft Budget allocates funds to support a pilot project to extend operating hours at Olievenhoutbosch Clinic.
Finally, the Draft Budget includes provision to recruit an additional 200 TMPD officers.
Expanding and renewing the TMPD force is critical to keeping residents safe
and secure.
The Draft 2025/26 Budget represents a balanced and responsible financial plan that seeks to address service delivery challenges while maintaining financial
sustainability.
The City encourages all residents and stakeholders to participate in the public consultation process to ensure that the final budget reflects the collective vision for a thriving and inclusive Tshwane.