Gauteng schools face R1.87bn shortfall after payments delayed

Gauteng schools are facing a significant funding shortfall of R1.87 billion due to delayed payments, according to the Gauteng Department of Education (GDE). The province's Finance MEC, Nkululeko Dunga, informed the Gauteng Provincial Legislature about the cash-flow constraints that led to the payment delays. Dunga had warned the Provincial Treasury about the funding requirements months prior to the actual delays, submitting initial projections in February and a follow-up set in June 2026.

Despite these warnings, schools did not receive their full first tranche of allocations. The issue stems from Gauteng's method of receiving its provincial equitable share from the National Treasury, which involves equal weekly payments rather than cash-flow projections. This approach has created pressure on the province to distribute the available funds evenly across its 16 departments.

Treasury has not assessed the impact of the delayed payments on schools already struggling with financial challenges, such as their ability to pay municipalities, service providers, and maintain facilities, support teaching and learning, or keep essential services running. The Democratic Alliance (DA) in Gauteng has called for transparency regarding the correspondence between the GDE and Treasury, as well as a detailed account of what was requested, approved, and ultimately transferred to schools.

The DA's spokesperson, Michael Waters, highlighted the urgent need for the province to explain how schools are expected to meet their obligations while waiting for the overdue funds.