Gauteng municipalities have delivered a generally stable financial performance halfway through the 2025/26 financial year, but key risks remain around debt collection, infrastructure spending, and service delivery sustainability.
According to the latest provincial treasury report, municipalities collectively budgeted R229.1 billion in operating revenue and R222.2 billion in operating expenditure for the current financial year. By 31 December 2025, municipalities had generated R123.3 billion in revenue (53.9%), slightly above the expected mid-year benchmark. Operating expenditure stood at R109.2 billion (49.2%), indicating that most municipalities are spending within approved budgets. However, some municipalities, including the City of Johannesburg and several local municipalities, reported operating deficits during this period. 
Infrastructure investment remains a major focus area. Municipalities approved a combined R16.2 billion capital expenditure budget, with funding largely coming from national grants, borrowings, and internally generated revenue. Despite this, capital spending reached only 34% of the annual budget by December 2025, raising concerns about potential service delivery delays if spending does not accelerate. 
Debt pressures also continue to challenge municipalities. Total municipal debtors stood at R165.7 billion, with households accounting for over 73% of the total. At the same time, government departments owed municipalities approximately R2 billion, mainly linked to infrastructure, education, and health services. 
Provincial Treasury says it will intensify financial management support, improve procurement planning, and strengthen infrastructure delivery to stabilise municipal finances and protect service delivery to Gauteng communities.
