Dear Editor
The DA in the Western Cape welcomes the commitment by the Western Cape Government to protect our frontline serves and our most vulnerable residents by spending 82% of its budget over the next three years specifically on education, healthcare and social development. This includes school nutrition programmes, fee exemptions and housing opportunities, all of which sends a very clear signal that the Western Cape is deliberate about recovery and making sure support is available to those who need additional lifelines.
This Western Cape Medium Term Budget will also see over the medium term:
- R1.4 billion allocated to protect and create jobs through boosting investment and exports, development skills programmes and ease of doing business.
- R2.2 billion to help create safer communities through deploying more law enforcement officials, programmes which support families at risk and creating safe spaces.
- R800 million has been ringfenced in the Western Cape Government’s reserves to capacitate its response to the Covid-19 pandemic.
- R28.6 billion will be spent on infrastructure including R1.7 billion which has been allocated to assist local municipalities in developing energy, water and wastewater infrastructure projects in their communities.
- And to ensure that residents receive the best service delivery from local municipalities, an additional R15 million has been allocated to build municipalities’ capacity and support their initiatives.
MPP Deidré Baartman says: “We need to be very honest about this budget and our financial position in the province and country as a whole. What we’re seeing from the provincial government is a swift, agile response to the pandemic and the need for recovery. But this is not being backed by real support from national government.
While there may be a short-term increase in the budget for the current financial year, in the long term, the Western Cape budget will be cut by R8.4 billion in real terms. It is particularly worrying that R1.2 billion will be cut to our healthcare service over the medium term by national government whilst we are in the midst of fighting a pandemic. The healthcare platform is crucial and needs the financial resources from national government to respond effectively to protect the residents of the Western Cape.
We also continue to have concerns about the provincial equitable share (PES) formula which, per admission by National Treasury, does not take into account safety, particularly Gender-Based Violence, and the effect this has on the provincial government’s spending. While additional allocations may be made for GBV over and above the PES formula, our national counterparts need to match the systemic problem with a systemic solution.
More than this, the R1.4 billion increase allocated to the Western Cape for this financial year simply allows the Western Cape Government, like other provinces, to pay its staff according to the national public wage agreement negotiated by the National Government. This increase will not directly bolster frontline services, but simply allow governments to pay employees. This wage agreement and the continued ballooning of the public wage bill risks the financial stability of the entire country and cuts into governments’ ability to serve our residents.”
Regards
Deidré Baartman, MPP
DA Western Cape Spokesperson on Finance, Economic Opportunities, and Tourism
