JCA Flags Serious Financial Risks in Johannesburg Draft Budget

Johannesburg Draft Budget Faces Scrutiny Over Cash-Flow and Debt Concerns

The Joburg Crisis Alliance (JCA) has submitted a detailed response to the City of Johannesburg’s Draft Budget 2026/27, warning of deepening financial instability, governance failures and worsening service delivery. The submission raises concerns about missing financial information, growing debt, declining maintenance spending, continued water losses and rising household tariffs.

‍The Joburg Crisis Alliance (JCA) has submitted a detailed response to the City of Johannesburg’s Draft Budget 2026/27, raising serious concerns about the City’s financial management, governance failures and deteriorating service delivery. The submission was prepared to encourage constructive public engagement and provide a structured analysis of the City’s financial position.

One of the JCA’s primary concerns is the lack of transparency in the draft budget documents. The Alliance states that important financial information, including audited figures, historical expenditure records and supporting schedules, has been omitted from several sections of the budget. This, it argues, makes it difficult for councillors, residents and civil society to properly assess whether public funds are being used effectively and responsibly.

The submission also highlights worsening liquidity and cash-flow pressures within the City. According to the JCA, Johannesburg’s cash coverage has declined sharply from 47.8 days in 2020/21 to only 15 days in 2024/25, which is well below National Treasury’s recommended levels. Concerns were further raised about the reliability of the City’s financial projections, as previous cash-flow forecasts have reportedly proven inaccurate.

The Alliance warns that debt owed to the City and impaired debt are both projected to increase significantly over the next three years. It argues that the budget fails to present a credible plan to improve revenue collection, reduce bad debt or address delayed payments to creditors. At the same time, the JCA criticises the reduction in repairs and maintenance spending despite Johannesburg’s growing infrastructure failures and maintenance backlogs.

Additional concerns include continued water losses caused by leaks and poor data management, rising household tariffs and increases in the domestic water demand management levy. The submission also raises governance concerns linked to alleged compliance failures and questions around staffing figures, executive remuneration and the expansion of boards within municipal entities. The JCA has called on the City to address these issues before the budget is finalised.