The eThekwini Municipality has unveiled its draft budget for the 2026/27 financial year, with proposed tariff increases that have sparked concern among residents and opposition parties. The total proposed budget is R74.7 billion, comprising an operating budget of R68.8 billion and a capital budget of R5.9 billion.
eThekwini Municipality Budget Breakdown
The budget will be taken to the communities for public consultation, with Mayor Cyril Xaba stating that it addresses the tough economic times by balancing fiscal discipline with targeted revenue growth. However, opposition parties have raised concerns about the proposed tariff increases, including a 10.5% hike in electricity, 16% in water, 14% in sanitation, and 13% in refuse collection.
According to the National Treasury, the above-inflation tariff increases may have a significant impact on low-income households. Councillor Saul Basckin, representing ActionSA in eThekwini, warned that the increases raised concerns about affordability, fairness, and the continued deterioration of service delivery.
Proposed Tariff Increases
- 10.5% increase in electricity
- 16% increase in water
- 14% increase in sanitation
- 13% increase in refuse collection
Themba Mvubu, EFF councillor in eThekwini, said residents derived no pleasure from hikes, while Jay Singh, representing the United Independent Movement, called on communities to meaningfully engage on the impact of these increases and the service improvements they expected in return.
Democratic Liberal Congress Leader Patrick Pillay expressed concern that the city’s budget was prepared during a unique period, with the global economy experiencing a downturn due to the US-Israel war in Iran. As noted by the South African Reserve Bank, the economy is facing significant challenges, and the proposed tariff increases may exacerbate the situation.
