2026/27 Draft Budget tabled for public consultation

 

2026/27 Draft Budget tabled 

for public consultation

ROMITA

HANUMAN-PILLAY

ETHEKWINI Mayor Councillor Cyril Xaba tabled the City’s R74.7 billion budget during a Full Council meeting on 31 March at the Inkosi Albert Luthuli International Convention Centre.

With an operating budget of R68.8 billion and a capital budget of R5.9 billion, it will now be released to all sectors for consultation and feedback and will thereafter be adopted in May, after considering all comments.

The Draft Budget is based on the principles of sustainability and realistic revenue projections and projects that are ready for rollout.

Mayor Xaba said: ‘’The 2026/27 Draft Budget highlights that eThekwini Municipality is able to endure a challenging economic environment and emerge stronger, more sustainable, and better positioned to serve communities. This budget balances fiscal discipline with targeted revenue growth, aiming to manage high debt while supporting vulnerable households, infrastructure and job creation.’’

As a caring Municipality, the provision of rates rebates and a basket of free basic services will be funded through equitable share. A significant chunk of the budget is prioritised for Trading Services Reforms, which aims to improve efficiency in water sanitation, and energy. A total of R1.1 billion will be spent on Trading Service Reform projects.

The capital budget for the 2026/27 financial year amounts to approximately R5.9 billion and will be spent on the upgrade and expansion of wastewater treatment works, replacement of water pipes, and water loss prevention.

The budget will be presented to residents, business, and civil society through a series of consultations that will be advertised on the City’s official platforms and in the media.

The proposed tariff increases are based on the increases submitted by bulk providers, Eskom (9 percent) and uMngeni-uThukela Water (13 percent), taking into account the affordability of residents and the sustainability of the Municipality.

Water

Residential – 15%

Business – 16%

Electricity

Residential – 10.5%

Business – 10.5%

Sanitation

Residential

Business

Property Rates – 5%

Refuse – 13%

To ensure alignment with ward priorities, the Municipality has started engagements with councillors. At these meetings, draft capital budget allocations are presented per ward, providing councillors with an opportunity to review proposed projects, identify any discrepancies or omissions, and submit corrections and additional inputs.