Office of the Premier 2025/06/29 - 22:00
Lerato Mailoane
True to its commitment, the Gauteng Provincial Government (GPG) is on course to paying the e-toll debt.
Finance and Economic Development MEC Lebogang Maile announced a R5.4 billion payment scheduled for Monday, 30 June 2025, towards the e-toll debt and the contribution towards the SANRAL Gauteng Freeway Improvement Project
As of today, the GPG has made two payments towards the e-tolls debt.
Last year, the GPG made the first instalment amounting to R3.8 billion as part of the province's commitment to settling the R20 billion debt linked to the Gauteng Freeway Improvement Project (GFIP).
The upcoming R5.4 billion payment will be split into just over R3 billion for debt and interest, of R2.099 billion for road maintenance.
"The amount due on 30 June 2025 is based on the Memorandum of Agreement, is R3.377 billion in terms of historical debt. This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30 percent contribution," said Finance MEC Lebogang Maile.
Maile was addressing a media briefing on Sunday, 29 June 2025 in Sandton on Gauteng Provincial Treasury's five-year budget approach that will facilitate provincial delivery based on the Medium-Term Development Plan for the 7th administration.
"The five-year budget approach will focus on introducing and implementing immediate, short-term, and medium-term budget reforms over the 2025 MTEF. This includes maintaining fiscal discipline and credibility, and impactful service delivery."
Over the next few years, the GPG will have to allocate a substantial amount of funds each year to service the repayment obligations for e-tolls. This, he said will be happening in a constrained fiscal environment.
Maile said the province would also implement various measures and reforms to ensure the sustainability of our fiscal environment. These include active debt management strategies, spending restraint, improving compliance with rules and regulations in supply chain management, as well as revenue enhancement.
"The reality of the situation is that the funding envelope is stretched by existing allocations, particularly in terms of keeping critical social programmes in health and education funded. Nevertheless, we reaffirm our commitment to the residents of Gauteng that the servicing of the e-toll debt will not compromise our priorities, particularly to social services such as health and education."
Maile acknowledged that the debt repayment, along with other financial pressures such as budget cuts and accruals, has placed a R50 billion strain on the provincial budget. However, he assured that essential services like education, healthcare, and social development would not be compromised.
To offset the financial impact, the provincial government has implemented a revenue-generation strategy aimed at increasing collections. Last year, Gauteng over collected revenue by R400 million, signalling potential for further revenue growth.
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