Gauteng Finance MEC Nkululeko Dunga said the province faces a worrying financial state due to R9.3 billion [1] in accruals.
This fiscal instability threatens the province's ability to maintain essential services and could lead to a direct intervention by the national government. If the national treasury freezes funding, the province may struggle to meet its basic operational obligations.
Reporting figures from the end of March 2026, Dunga highlighted a combination of unauthorized spending and the underspending of the R179.2 billion [2] provincial budget. He said the province is struggling with an increasing non-payment of suppliers and unpaid invoices.
"We have serious concerns about underspending and the increasing non‑payment of suppliers," Dunga said [2].
The situation has drawn the attention of the national government. Finance Minister Enoch Godongwana has threatened to withhold a portion of the provincial equitable share due to a R1.9 billion [3] debt and funding issue.
Dunga said that freezing these funds would have a devastating impact on the province's already severely strained finances [2]. The MEC said that the current trajectory of financial mismanagement, marked by failure to utilize allocated budgets while simultaneously accumulating debt, creates a precarious cycle.
Provincial officials must now address the gap between their budget allocations and actual expenditure to avoid further sanctions from the national treasury. The accruals, which represent expenses incurred but not yet paid, continue to mount as the province fails to settle accounts with its vendors [1].
“"We have serious concerns about underspending and the increasing non‑payment of suppliers."”
The tension between Gauteng's provincial treasury and the national government reflects a systemic failure in fiscal discipline. When a province underspends its budget while simultaneously accumulating billions in accruals, it suggests an inability to execute planned projects despite having the funds. A potential freeze of the equitable share by the national government would likely lead to a liquidity crisis, further hindering the province's capacity to pay suppliers and deliver public services.
