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The Joburg Crisis Alliance (JCA) has called for urgent scrutiny of the City of Johannesburg’s proposed 2026/27 Budget, warning that adoption of the budget in its current form could deepen financial instability, weaken essential services, and expose the Council to legal challenge. The Alliance says municipal budgets must be realistic, funded, and procedurally compliant, and that unresolved defects in the draft place residents at risk of rising debt, service disruption, and declining accountability.

The JCA says its concerns are grounded in the Local Government: Municipal Finance Management Act (MFMA), which requires annual municipal budgets to be properly prepared, consulted on, approved, and funded, including under sections 16, 18, 21, 23, and 24. The Alliance also points to the Local Government: Municipal Systems Act, which emphasizes community participation and developmental local government, as well as sections 152 and 153 of the Constitution, which require municipalities to provide services sustainably and to align budgeting and planning with the basic needs of communities.

According to the JCA, its submission to the relevant leadership structures identifies material defects, inconsistencies, funding risks, and governance concerns in the Draft Budget. The Alliance warns that, if these issues are not addressed before adoption, the budget may be vulnerable to challenge on the basis that it does not meet the MFMA standard of a credible, funded, and procedurally compliant municipal budget. “The City cannot ask residents to carry the cost of a budget that appears unstable, under-justified, and potentially unlawful if adopted without correction.

Johannesburg needs a budget that is credible, transparent, and fully aligned with the City’s legal obligations to deliver services sustainably and accountably,” said Yunus Chamda, JCA Coordinator. “Residents should not be expected to absorb the consequences of a budget that appears to shift risk onto communities while leaving serious questions of affordability, credibility, and accountability unresolved. The defects in this budget must be fixed before adoption, not after the damage is done,” Chamda said.

In light of these concerns, the JCA is calling for urgent attention from the following national portfolios:
• National Treasury: National Treasury should urgently assess whether the 2026/27 Draft Budget meets the MFMA requirements of a funded and credible budget and provide any necessary guidance or intervention within its oversight mandate.
• Ministry of Cooperative Governance and Traditional Affairs (COGTA): COGTA, together with the relevant provincial authorities, should exercise its oversight and support role by assessing the lawfulness, sustainability, and developmental alignment of the proposed budget and by ensuring that any identified defects are addressed before adoption.
• Ministry of Electricity and Energy: The Ministry should engage on the systemic risks that municipal financial instability may pose to electricity supply and revenue collection and should work with the relevant entities to support continuity of service to residents.

The JCA has called on all city councilors and political parties to ensure that the flaws identified in the current draft budget are addressed before the Council adopts the 2026/27 Budget. If the Council proceeds without remedying these material defects, the Alliance says it will consider all available accountability mechanisms, including legal remedies where appropriate.

Issued by the Joburg Crisis Alliance