THE Gauteng provincial legislature’s portfolio committee on human settlements has expressed concerns over the reduction of the budget of the province’s Human Settlements Department by R450 million despite the increasing housing backlog.
The reduction was necessitated by the decision by the National Department of Human Settlements to reduce the human settlement development grant (HSDG) allocation to Gauteng by R300m and the informal settlement upgrading partnership grant (ISUPG) allocation by R150m due to unsatisfactory performance by the province.
Earlier this month, IOL reported that Finance Minister Enoch Godongwana announced cuts in four provinces – Gauteng, Western Cape, Limpopo, and the Free State – totalling almost R1 billion.
According to the committee, the department’s 2024/25 adjusted budget decreased from almost R6.1bn to R5.642bn following Godongwana’s decision.
"The downward adjustment to the budget of the department is rather disappointing noting that this is done toward the end of the financial year (March 31, 2025)," the committee stated this week.
It added that the department might have already made commitments and that what was more concerning was that this was done on the basis of its unsatisfactory performance.
According to the portfolio committee, the budget cuts are worrisome as they will affect the service delivery that the department is entrusted with.
Mervyn Cirota, DA Gauteng shadow human settlements MEC, said the 7.5% budget recall by the National Treasury places the department under immense pressure and hinders its ability to execute crucial projects to improve the living conditions of Gauteng residents.