The Gauteng government has vowed to spend less on catering, travel, accommodation and telecommunications in an effort to cut costs.
This is in line with Finance Minister Pravin Gordhan's call for all spheres of government to implement cost cutting measures.
The province will however continue with massive investments on infrastructure to boost economic growth.
It will spend R41billion over the next three years to build roads, hospitals, clinics and schools to improve the delivery of basic services.
Gauteng Finance MEC Barbara Creecy presented the 2016/17 budget in the legislature in Johannesburg on Tuesday.
The Gauteng Departments' of Education and Health have received the biggest budget allocations.
Creecy made the announcement when she tabled her R103 billion provincial budget.
Education's budget has increased from R36 billion to R39 billion, while the health budget has been increased by R2 billion to R37 billion.
Creecy says they can't compromise on education and health as they are government's main priorities.
"Because of the pressure that health and education face from the ever increasing population of the province, we will continue to increase funding to these two departments over the medium term even in the face of a tight fiscal environment," says Creecy.
The Department of Economic Development has been allocated R1.3 billion as part of efforts to grow the province's economy and reduce unemployment.
The province has also vowed to speed up the implementation of the open tender system to clamp down on corruption
The funds will also support emerging small to medium businesses. The MEC says they want to support various industrial and skills centres until they become fully-fledged businesses and industrial hubs.
"This includes the R195 million we've set aside to enhance local economic activity by establishing and refurbishing existing industrial zones including the Orlando Industrial Park, Saulsville Industrial Park, Resudentia Industrial Park, Khutsong Business Hub, Hammanskraal Skills Centre, Mabopane Skills Centre, Ennerdale Skills Centre, Alexandra Industrial Park and Kwa-Thema Business Park," says Creecy.
The R5.2 billion will go towards the delivery of houses and roads and transport gets R2.3 billion.
The province has also vowed to speed up the implementation of the open tender system to clamp down on corruption.
The MEC further says there's a need to improve project management to strengthen clean governance and improve financial controls.