Schools in the Gauteng province are facing a funding shortfall of R1.87 billion after the Provincial Treasury advised the Gauteng Department of Education (GDE) to postpone payments for Norms and Standards due to cash flow issues.
The scale of this financial crisis was revealed in a written response by the Minister of Finance for Gauteng, Nkululeko Dungi, to questions posed in the Gauteng Provincial Legislature. This response showed that the GDE had warned the Treasury several months before the anticipated payment delays to schools.
According to Dungi, the GDE had notified the Treasury in advance about funding needs, submitting initial forecasts in February and a second set of data in June.
"The GDE sent two letters to the Gauteng Provincial Treasury (GPT); the first letter was dated February 11, 2026, and the second was dated June 13, 2026. In both letters, the GDE indicated projected transfers to schools for the 2026/27 financial year."
Despite these warnings, schools did not receive their full initial allocations. Dungi explained this situation by describing how Gauteng receives its provincial equitable share from the National Treasury, noting that funds arrive in equal weekly amounts rather than according to the cash flow forecasts submitted by provincial departments.
He stated that this mismatch creates pressure on the province to distribute available money among its departments. "This linear transfer method creates cash flow constraints, as funds must be equitably distributed among 16 departments within the province."
Dungi also reported that the Treasury did not assess the consequences of delaying payments to schools, which were already under financial strain, including their ability to pay municipal and service provider bills, maintain facilities, provide teaching and learning, and maintain electricity and water supply. He added: "The GPT conducted no assessment."
The Treasury did not provide details on the amount requested by the GDE for the first tranche, what was approved, or what was ultimately transferred to the department. It cited the GDE's total budget of R70.952 billion, of which R11.180 billion was allocated to discretionary goods and services.
Previously, the GDE admitted it could not pay the R1.87 billion owed to schools, attributing the deficit to cash flow problems and the fact that monthly funding from the Provincial Treasury was insufficient to cover all outstanding transfers.
The DA's education representative in Gauteng, Michael Waters, stated that the party would demand access to the correspondence between the GDE and the Treasury preceding the delays, as well as a full report on what was requested, approved, and ultimately transferred to the schools. Waters emphasized that the province must explain how schools are expected to meet their obligations while awaiting money that has already been earmarked for them. "The consequences are evident in the staggering R1.87 billion deficit, creating additional financial pressure on schools that are already struggling to maintain basic services."
The DA also demands clarification on whether Gauteng anticipates further cash flow problems during the financial year and whether other provincial departments are facing similar delays.