Gauteng Settles First Instalment of R3.8bn on e-Toll Debt Amidst Fiscal Balancing Act

In a significant fiscal move, the Gauteng provincial government commenced the arduous task of erasing the remains of the controversial e-toll system. The Gauteng Finance MEC, Lebogang Maile, disclosed that the province has paid R3.8 billion, which includes a maintenance component of R546 million. This marked the first of a series of five annual instalments dedicated to settling the historical debt owed to the South African National Roads Agency (Sanral).

The decision echoes the mandate issued by Finance Minister Enoch Godongwana, who in the 2022 medium-term budget policy statement asserted Gauteng's responsibility for 30% of Sanral's debt. With the overall sum tallied at a staggering R20 billion, the provincial government grapples with a financial strategy to avoid impacting front-line and essential social services.

Maile emphasized the province's aversion to additional loans and conveyed the government's intention to identify alternative revenue sources, underscoring its commitment to maintaining basic service provision and support for vulnerable populations. To achieve this, Gauteng will tap into three main revenue streams: equitable share from the national government, conditional grants, and internally generated funds.

The statement comes after the e-toll system's termination in April, a system that had faced staunch opposition from its inception. It had been operational for less than a decade, having faced relentless criticism and poor compliance from motorists, leading to its eventual shutdown. This left the province in a complex web of debt and social responsibility.

Effectively managing this debt without compromising the delivery of services poses a significant challenge to Maile and his colleagues. Departments have been urged to look beyond standard fiscal avenues to supplement the constrained revenue while aligning with austerity measures, implying a concerted effort toward frugal financial management.

The finance MEC also addressed concerns from individuals who had complied with e-toll payments, saying no refunds would be issued as the payments were considered legal and collected legitimately.

Gauteng's pragmatic approach establishes a roadmap to financial recuperation, seeking economic stability without disrupting the fabric of society. This balancing act of debt settlement and safeguarding key services will be a defining element of Gauteng’s financial policy and governance in the years to come.