Arnolds: CoJ budget fully funded, pro-poor

Speaking during the tabling of the budget on Wednesday morning following Mayor Dada Morero’s State of the City Address earlier this month, Arnolds positioned the budget as a tool for long-term change.

“This is a fully funded, pro-poor and pro-growth budget—an instrument of transformation, and a roadmap to resilience,” said Arnolds.

The city has announced a total budget of R89.4 billion, up from R83.1 billion in the previous year. Key revenue streams are:

Electricity: R25.6 billion

Water & Wastewater: R20 billion

Property Rates: R18.1 billion

Refuse Removal: R3.3 billion

National Fuel Levy: R4.57 billion

The budget includes R84.8 billion in expected operating revenue and R80.7 billion in operating expenditure, projecting a surplus of R4.1 billion before taxation and capital grants.

Arnolds acknowledged the economic challenges Johannesburg continues to face, including high unemployment, low investment, and the impact of load-shedding.

“The City of Johannesburg’s 2025/26 budget is being tabled against a backdrop of persistent economic challenges, both nationally and locally,” she said.

Last year’s budget came under fire for underspending on infrastructure maintenance and delays due to political instability. This year, Arnolds stressed a shift toward fiscal stability and service delivery.

“This is not a survival budget; it’s a stabilisation and growth budget. It reflects hard choices, tariff adjustments, reprioritisation, performance-linked allocations—but these are the choices that will allow Joburg to turn the corner,” she said.

The MMC also defended the city’s tariff increases. In 2024, electricity tariffs rose by 12.7% and water and sanitation by 7.7%, following approval from Nersa.

Arnold noted that the tariff structure includes support for vulnerable households, offering a lifeline and indigent benefits.

She confirmed that all Joburg residents will receive the first six kilolitres of water free each month. Those who qualify under the Expanded Social Package (ESP) will get:

Up to 15 kilolitres of free water

50 kWh of free electricity

Free sanitation and refuse removal

“This city believes that basic services are a human right, not a privilege,” Arnolds said.

The city expects a 9.3% increase in revenue from the previous year, driven largely by service charges, which continue to make up the largest portion of Johannesburg’s income base.

“This increase is primarily driven by service charges, which account for the largest share of the city’s revenue base,” she concluded.

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