Tshwane budget gets Treasury thumbs up

Delivering the budget speech on Thursday, Finance MMC Eugene Modise announced the metro’s R54.6 billion budget, comprising a R52.2 billion operational budget and R2.4 billion for capital expenditure.

The budget, he said, was achieved without borrowing and reflects the city's improving financial health.

“This milestone would not have been possible without our coalition partners. It is with immense gratitude that I pay tribute to those who make up our Multiparty Coalition,” said Modise, crediting parties including the ANC, EFF, ActionSA, and others for their support.

The budget marks the first time since 2022 that Tshwane has tabled a funded budget.

Credit ratings agency Moody’s has also revised Tshwane’s credit outlook from negative to stable, citing improved cost control and budget discipline. 

The agency affirmed the city's long-term CCC(za) rating and upgraded its outlook to positive. 

Modise said this serves as a strong signal to investors and stakeholders.

“Splendidly, the global credit rating agency has affirmed the City of Tshwane’s long-term rating... and revised our financial outlook from negative to positive,” said Modise. “We can confidently assert that the finances of the city are stable.”

Modise described the budget as a turning, saying it was built around six strategic pillars — including financial stability, service delivery acceleration, infrastructure development, and community well-being.

Residents can expect adjusted tariffs, including:

Electricity: +10.2% (below Eskom’s 11.2% bulk increase)

Water: +13% (below Rand Water’s 15.3% increase)

Sanitation: +6%

Refuse removal: +4.6%

Property rates: -4% (a reduction to ease pressure on ratepayers)

A new R194 monthly cleansing levy for households using private refuse collectors.

Addressing operational changes, Modise confirmed a R704 million expenditure increase, with key shifts such as a 3% reduction in employee-related costs, a 31% increase in debt impairment to manage defaults, and a 36% drop in depreciation and amortisation.

Tshwane has made significant fiscal gains, including:

Settling a R4.7 billion smart meter tax burden

Reducing Eskom debt by over R1.1 billion

Improving its cash ratio to 1:1.13

Raising its operating surplus from R229 million to R1.3 billion

Boosting cash reserves to R2.7 billion

“We have worked with discipline and determination to improve our financial standing,” Modise said, positioning the budget as both a practical and symbolic step toward restoring trust in the city’s governance.

“With National Treasury's seal of approval, Tshwane’s leadership says it is ready to build a cleaner, safer, and more economically resilient capital.”

ALSO READ