Service delivery is the primary function of government and in this process the government has a responsibility to ensure that citizens have access to their fundamental rights as enshrined in the Constitution. Due to the limitation of financial resources at its disposal the state has been compelled to find alternative service delivery mechanisms in order to fulfil its mandate of ensuring that services meet the expectations of the people. In this regard Public Private Partnerships has been identified as an instrument in addressing the massive infrastructure and service delivery backlogs. Attention will be devoted to the establishment and examples of PPPs and the effect of PPPs on the process of budgeting. Finally the challenges regarding the utilisation of PPPs in service delivery will be highlighted.