Executive Deputy Mayor and Member of the Mayoral Committee for Finance Cllr Loyiso Masuku used the tabling of the City of Johannesburg's R97.1 billion budget for the 2026/2027 financial year to outline an ambitious financial turnaround framework aimed at restoring the City's financial health and improving service delivery.
Delivering the budget speech on 27 May 2026, Cllr Masuku acknowledged the serious financial and operational challenges facing Johannesburg, stressing that the City's recovery would require far more than improved revenue collection.
“Central to the City's strategy is a six-pillar financial turnaround framework that focuses on financial recovery, revenue enhancement, expenditure containment, creditor and liquidity reform, governance and compliance, and labour stability," she highlighted.
According to Masuku, the framework is designed to provide a practical roadmap for rebuilding Johannesburg's financial credibility while ensuring that essential services continue reaching residents.
Masuku said one of the City's biggest challenges has not been the absence of plans, but the failure to implement them effectively. She emphasised that implementation discipline would now become the true measure of success.
She further noted that council is also expected to support a City Manager-led reporting architecture that will introduce a single tracker and measurable dashboard to monitor progress across departments and municipal entities. The City further committed itself to working alongside the Gauteng Provincial Government's COGTA Turnaround Strategy to strengthen governance and financial reforms.
“To address this, the City Manager will continue leading an integrated implementation model that aligns municipal departments and entities through measurable targets, monthly reporting and performance monitoring systems," noted Cllr Masuku.
As part of the turnaround plan, Johannesburg will introduce a hybrid model for sweeping arrangement reform and a phased Revenue-Sharing Agreement with Johannesburg Water from 1 July 2026. These interventions are expected to improve financial accountability and cash flow management within the City's entities. Cllr Masuku warned that non-payment by residents and businesses who can afford to pay continues to weaken infrastructure maintenance and delay service delivery.
“There can be no service delivery without revenue. There can be no infrastructure recovery without collection. There can be no capital investment without financial credibility," she said.
To strengthen revenue recovery, the City plans to intensify debt collection efforts, improve billing accuracy and strengthen enforcement mechanisms through the Revenue War Room. Additional interventions include Section 118 sales in execution, outdoor advertising enforcement, development contributions, asset optimisation and improved financial controls.
Cllr Masuku cited the success of the Debt Relief Programme, which has already attracted more than 9 000 applications from residents, small businesses, faith-based organisations and non-governmental organisations.
Through the programme, qualifying applicants may receive debt write-offs of up to 50% on eligible accounts before 30 June 2026.
Written by Sascha-Lee Joseph
28/05/2026
Recommended for you:
Johannesburg unveils R97.1 billion budget to drive growth, improve service delivery
Streaming of the City of Johannesburg 2026 Budget Speech from Braamfontein
Joburg's 26/27 budget allocates R 28.3 billion towards energy security
All eyes on Joburg as Mayor Morero delivers State of the City Address
To stay informed about the latest developments in the City, connect with us on:
X: @CityofJoburgZA
Facebook: City of Joburg
Instagram: @CityofJoburg
TikTok: @CityofJoburg
Threads: @cityofjoburg
LinkedIn: City of Johannesburg
YouTube: https://www.youtube.com/@CityOfJoburgZA/videos
