The South African National Treasury has confirmed that the City of Johannesburg's R97.1 billion budget for the 2026/27 fiscal year is fully funded, marking a significant step in the municipality's financial stabilization efforts.
Executive Mayor Dada Morero announced the clearance, highlighting that the approval comes as the metro works to resolve a R23 billion governance backlog accumulated from previous administrative irregularities.
Mayor Morero emphasized that while financial controls are improving, the metro must navigate a complex landscape of legacy liabilities and ongoing service delivery demands.
The budget clearance is viewed as a positive signal for municipal bond markets and local government creditworthiness, which have been under scrutiny due to widespread fiscal stress across South Africa's major metros.
By securing full funding status, Johannesburg aims to restore investor confidence and ensure continuity in essential service delivery, including water, electricity, and waste management, which have faced intermittent disruptions in recent years.
Despite the budget approval, the city continues to grapple with mounting debt levels and operational pressures.
Mayor Morero emphasized that while financial controls are improving, the metro must navigate a complex landscape of legacy liabilities and ongoing service delivery demands.