The Western Cape Government said on Thursday it has welcomed the additional funding allocated through the Provincial Equitable Share and Local Government Equitable Share, as announced in yesterday’s Medium Term Budget Policy Statement (MTBPS).
Finance Minister Enoch Godongwana delivered his MTBPS on Wednesday 21 October in the National Assembly during which he announced an additional R20,5 billion for the Provincial Equitable Share to assist provinces with higher health and education costs, while municipalities will receive an additional R21,8 billion through the Local Government Equitable Share to help cover the increasing costs of basic services.
Winde urges municipalities to improve service delivery
Alan Winde, Western Cape Premier, said additional support for provinces and municipalities was welcome, particularly given the pressures facing frontline services. “We encourage municipalities to use these allocations to improve service delivery and assist vulnerable households,” Winde said.
Call for review of equitable share formula
Deidré Baartman, Western Cape Minister of Finance, said the province would, however, continue to call for a full review of the Provincial Equitable Share formula. She said this is in order to incentivise economic growth and innovation within provinces as well as adequately account for migration patterns and an ageing population in South Africa.
Public-safety allocations noted
The provincial government said it noted the allocations towards public safety, including funding for SANDF deployments in support of the police efforts to combat gang-related crime and interventions to combat gender-based violence, including hiring additional social workers.
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Disaster-relief funding falls short
It also noted the R6,2 billion for unforeseeable and unavoidable expenditure, largely for disaster relief and additional provision through the contingency reserve to respond to risks associated with El Niño and other emergency events.
However, it said this covered only future disasters and would not fully cover the previous extensive disaster damage incurred within the province. The Western Cape Government said it would continue to call for the full reform of the disaster funding process for provinces.
Fiscal discipline and debt stabilisation
Winde and Baartman noted National Treasury’s commitment to fiscal discipline and debt stabilisation.
“Fiscal discipline and good governance create the conditions necessary for sustainable economic growth and job creation,” the government said.
“A stable fiscal environment strengthens investor confidence, enables infrastructure investment and helps government protect essential services.”
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