South Africa: Gauteng Is Forced to Make Tough Choices but It Won't Cut Education and Health Jobs

The Gauteng government is paying the price for scrapping e-tolls, and will have to service its R20.1-billion debt to Sanral from its already constrained resources.

Six months after the controversial e-tolls were permanently shut down, the Gauteng government is still grappling with the financial burden. To service the R20.1-billion debt, which includes interest, Finance and Economic Development MEC Lebogang Maile said the province has had to make tough decisions that will strain an already stretched budget.

Maile made the remarks on Tuesday, 26 November, while tabling his Medium-Term Budget Policy Statement before the Gauteng legislature in Johannesburg.

"The obligation to service this debt has necessitated the implementation of a host of reforms and measures to maintain a healthy fiscal environment that will be both sustainable and manageable in the long term."

The electronic tolling system, officially called the Gauteng Freeway Improvement Project, imposed tolls on Gauteng motorists for using newly upgraded highways in the province. The system, however, faced significant opposition from businesses, motorists, trade unions and civil society organisations.

In September, Maile announced that the provincial government had paid the SA National Roads Agency (Sanral), R3.8-billion towards its e-toll debt. This payment marked the beginning of the provincial government's plan to settle its e-toll debt, with a commitment to settle it...

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