City of Tshwane denies R2 billion shortfall for employee costs

The City of Tshwane has dismissed allegations of a R2 billion shortfall in its 2026/27 budget for employee-related costs. The shortfall figure stems from an initial departmental request differing from the final approved allocation. In response to a report by Culvin Mabasa, the city clarifies that an initial request for around R15 billion for personnel costs was reduced to approximately R13 million after scrutiny by the Group Financial Services.

The approved allocation is deemed adequate to cover anticipated employee-related expenses. Notably, the approved budget comprises R229 million for filling vacancies and R362 million for salary back-pay obligations. The city emphasizes that this difference should not be misconstrued as an unfunded liability or salary shortfall. It reiterates that employee-related expenditure will be closely monitored to ensure personnel costs stay within the approved budget.

Should spending trends necessitate additional funding, this can be addressed through established processes like the adjustments budget.