he City of Johannesburg has tabled a R97.1 billion budget for the 2026/27 financial year, laying out an ambitious plan to stabilise infrastructure, improve service delivery and strengthen the city’s finances amid mounting pressure from residents over electricity failures, water shortages, deteriorating roads and urban decay.
Executive Deputy Mayor and Finance MMC Councillor Loyiso Lugayeni-Masuku presented the budget this week under the theme: “Building Johannesburg Together: Investing Today, Securing Tomorrow.”
The budget paints a picture of a city attempting to rebuild itself while managing years of infrastructure backlogs, financial strain and rapid urban growth.
But beyond the political messaging, where exactly is the money going?
Electricity Takes the Biggest Slice of the Budget
The single largest allocation in the budget goes towards electricity and energy infrastructure, with R28.3 billion earmarked for City Power and related energy security initiatives.
This reflects the scale of Johannesburg’s electricity crisis.
Over the past few years, residents across the city have dealt with repeated power outages caused not only by Eskom load shedding, but also by ageing municipal infrastructure, overloaded substations, cable theft and equipment failures.
Large parts of Johannesburg have increasingly experienced prolonged blackouts following transformer explosions, mini-substation failures and infrastructure vandalism.
The City says the funding will be used to strengthen and maintain electricity networks, upgrade ageing infrastructure and improve energy reliability across Johannesburg.
Part of the investment is also expected to go towards reducing pressure on overstretched systems as the city’s population and electricity demand continue to grow.
The allocation signals that the municipality sees electricity stability as one of the most urgent threats to Johannesburg’s economic functionality.
Water and Sanitation Remain a Critical Priority
The second-largest allocation — R21.6 billion — has been directed towards water and sanitation services.
Johannesburg’s water infrastructure has come under increasing strain in recent years, with residents frequently reporting burst pipes, water interruptions, sewer spillages and collapsing sanitation systems.
Several areas across the metro have experienced repeated water shortages linked to ageing infrastructure, maintenance backlogs and pressure on supply systems.
The City says the allocation will support infrastructure repairs, pipe replacement projects, sanitation upgrades and improvements to water supply networks.
The investment also reflects growing concern over deteriorating sewer systems, which have become a major environmental and public health issue in several communities.
Water losses through leaks and ageing pipelines remain one of the municipality’s biggest long-term infrastructure challenges.
Roads, Stormwater and Transport Infrastructure
While the City did not publicly provide a single combined figure for roads and transport infrastructure in the summary released alongside the budget speech, transport and infrastructure maintenance remain a major part of the spending plan.
Johannesburg’s roads network has deteriorated significantly in many areas, with potholes, damaged traffic lights and poor stormwater drainage becoming common complaints from residents and businesses.
Flooding during heavy rains has also exposed weaknesses in stormwater infrastructure, particularly in older parts of the city.
The budget includes investment in road rehabilitation, stormwater upgrades and transport infrastructure maintenance aimed at improving mobility and reducing further deterioration.
Transport infrastructure remains particularly important for Johannesburg because of the city’s heavy reliance on road-based economic activity and commuting.
R7.2 Billion for Safety, Emergency Services and Urban Management
The City has allocated R7.2 billion towards law enforcement, emergency services and urban management.
This comes as Johannesburg continues grappling with crime, illegal dumping, hijacked buildings, informal trading disputes and pressure on emergency response systems.
The funding will support JMPD operations, emergency medical services, fire and rescue operations, by-law enforcement and broader urban management initiatives.
In recent months, the City has intensified operations in parts of the Johannesburg CBD and surrounding areas targeting illegal occupation, undocumented migrants linked to unlawful business operations, illegal dumping sites and by-law violations.
Urban management has increasingly become one of the municipality’s central political and governance priorities as officials attempt to reclaim deteriorating parts of the inner city.
Informal Settlements and Township Upgrading
The budget also places significant emphasis on informal settlement upgrading and township renewal programmes.
Johannesburg continues to face severe housing pressures driven by urban migration, population growth and economic inequality.
Large informal settlements have expanded across parts of the city as housing demand continues to outpace formal development.
The City says part of the budget will go towards improving living conditions, upgrading infrastructure and supporting development in historically neglected communities.
Township renewal and inner-city revitalisation programmes are also intended to stimulate economic activity and attract investment into struggling urban areas.
The municipality has repeatedly stated that inner-city decay remains both an economic and governance challenge for Johannesburg.
EPWP Jobs and Economic Pressure
The municipality says the budget will support the creation of 12 250 Expanded Public Works Programme (EPWP) job opportunities during the financial year.
South Africa’s unemployment crisis continues to place enormous pressure on municipalities, particularly in urban centres like Johannesburg where economic migration remains high.
EPWP opportunities are generally temporary jobs linked to infrastructure projects, cleaning programmes, maintenance work and community initiatives.
Although temporary, the jobs are often viewed by municipalities as a way to provide short-term income relief while supporting service delivery programmes.
Support for Vulnerable Residents
The City says it will continue expanding social support measures for vulnerable households through free basic services, rates rebates and the Expanded Social Package.
These interventions are designed to help low-income residents access basic municipal services despite rising economic hardship and the increasing cost of living.
Johannesburg, like many South African metros, continues to face growing pressure from residents struggling with unemployment, poverty and rising household costs.
Municipal debt and non-payment for services have also become growing concerns for the City.
The Financial Sustainability Question
A major theme running through the budget speech was the issue of long-term financial sustainability.
The City says it wants to strengthen revenue collection, improve governance systems and increase infrastructure maintenance in an effort to stabilise Johannesburg’s finances.
Like many municipalities across South Africa, Johannesburg faces the difficult balancing act of maintaining ageing infrastructure while also expanding services to a growing population.
The City has repeatedly warned that infrastructure neglect and declining revenue collection threaten Johannesburg’s long-term sustainability if not addressed aggressively.
The Real Test Will Be Delivery
While the budget outlines billions in planned spending, residents are likely to judge it on whether daily life in Johannesburg actually improves.
For many communities, the concerns remain immediate and practical:
Will the lights stay on longer?
Will water outages reduce?
Will roads improve?
Will emergency services respond faster?
Will the inner city become safer and cleaner?
Those are the questions that will ultimately determine whether Johannesburg’s R97.1 billion budget succeeds or becomes another ambitious plan that struggles to translate into visible change on the ground.