Godongwana allocates R86.9 billion to stabilise struggling municipalities and fund free basic services

By Thapelo Molefe

Finance Minister Enoch Godongwana has allocated R86.9 billion to municipalities to support the provision of free basic services to 11.2 million households.

Delivering his 2026 Budget Speech in Parliament on Wednesday, Godongwana said the funding forms part of government’s effort to stabilise local government, where communities experience the state most directly.

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“Of the allocated funding to local government, R86.9 billion is to support the provision of free basic services to 11.2 million households,” he said.

The minister acknowledged that many municipalities remain in financial and operational distress, limiting their ability to deliver essential services effectively.

Audit outcomes show that 63% of municipalities are in financial distress, while the proportion of clean audits remains low. Godongwana described this as an “unacceptable reality”.

“A central challenge with municipalities is that they not only differ in capacity, but also in