Gauteng schools struggle as education funding cut amid R12.9 billion E-Toll debt settlement

The Gauteng provincial government has confirmed that billions of rand in budget reallocations linked to the settlement of the province’s e-toll debt to the South African National Roads Agency (SANRAL) are placing significant pressure on the education sector, with schools reporting shortages in basic learning materials and difficulties paying for essential services such as electricity.

According to reporting, the province has committed approximately R9.3 billion to e-toll debt repayments, with further instalments expected over the medium term, a move critics say has contributed to a sharp reduction in education funding allocations. Gauteng schools have been affected by what it describes as a 64% reduction in school subsidies in certain funding categories, warning that principals are now struggling to maintain basic operations, including purchasing stationery and settling municipal accounts. Official provincial financial disclosures and budget statements show that Gauteng agreed to assume 30% of the national Gauteng Freeway Improvement Project (GFIP) debt, estimated at about R43 billion, translating to a provincial obligation of roughly R12.9 billion, which is being repaid in instalments over several years. Finance officials have previously acknowledged that the e-toll settlement arrangement is exerting “pressure on provincial finances,” affecting liquidity and limiting fiscal space for frontline services, including education and infrastructure maintenance. The Gauteng Department of Education has not publicly confirmed a direct line-item “cut” of the magnitude reported by critics, but has consistently maintained that its budget adjustments are driven by broader fiscal constraints, including reduced provincial revenue allocations and competing expenditure demands. Opposition parties have argued that the diversion of funds toward e-toll debt obligations is worsening service delivery conditions in schools, while government maintains that honouring debt commitments is necessary to stabilise the province’s long-term finances.