Western Cape MTBPS: A R230.82 billion framework for hope

Today, I tabled the Western Cape Medium Term Budget Policy Statement (MTBPS), the 2022 Adjustment Budget, and the Municipal Economic Review and Outlook 2022/23 (MERO) in the Western Cape Provincial Parliament.

We face significant challenges as a nation, including sluggish economic growth, high levels of unemployment and poverty, significant debt-service costs, a rising cost-of-living, and a debilitating energy crisis.

In the face of these powerful headwinds, the MTBPS and Adjustment Budget is our opportunity to set our course towards a better, more prosperous future.

A framework for hope

To give effect to this framework for hope, the MTBPS adds a total of R1.28 billion to spending over the next three years, bringing the total estimated expenditure for the Western Cape over the 2023 MTEF to R230.82 billion.

Firstly, to deliver on our priority of growth for jobs, we will add R466.5 million to the new Infrastructure and Mobility departments over the MTEF, while R257.3 million will be added to our Education and Health departments to expand critical infrastructure.

Overall, over the 2023 MTEF we are planning to spend R31.17 billion on infrastructure in the Western Cape.

Secondly, to deliver on our safety priority, we will allocate an additional R200 million over the MTEF to continue the Law Enforcement Advancement Programme, ensuring that boots-on-the-ground in crime hotspots continue to save lives. This brings the full allocation for LEAP over the 2023 MTEF to R900 million.

Lastly, to give effect to this framework of hope, we will add R246.54 million to the wellbeing priority over the MTEF to support a comprehensive response to the very real social distress being experienced in our communities. This includes funding for an additional 170 social workers in the Western Cape.

Overall, Health and Education will receive the lions-share of the Western Cape’s budget, with a combined allocation of R168.69 billion, or 73.1 per cent of the total budget over this period.

A budget that cares and prepares

In the Adjustment budget, to respond to pressures, a net addition of R490.67 million in expenditure has been allocated for the 2022/23 financial year, as follows:

• To provide the care our citizens need, R43.92 million will be allocated to fund additional social workers and alleviate the pressure on caseloads.
• A further R25 million has been allocated in the short-term to fund food relief initiatives.
• R196 million is allocated to the Department of Transport and Public Works to amongst others, improve transport safety and cover the operational cost of Go George.
• A further R128 million will be included for infrastructure programmes, including for the upgrading of road infrastructure.

Overall, in 2022/23, to keep us on our course, from recovery to growth, we will have allocated:

• R54.75 billion to our well-being priority
• R15.87 billion to our growth for jobs priority, and
• R2.65 billion to our safety priority.

After experiencing a once-in-a-century drought, followed by a once-in-a-century global pandemic, we know too well that being prepared is essential.   It is for this reason that that we will also re-charge our provincial reserves, with R1.46 billion being allocated for unforeseen and unavoidable expenses, which includes a contingency for unforeseen disasters, enabling a rapid and decisive response should they occur.

Our pathway from recovery to growth

I today shared how this government will set out on a pathway from recovery to growth, so that we realise a better future for our citizens.

This is our framework for hope. A plan to realise a better, more prosperous future for our citizens – a future with economic growth that leads to opportunity and job creation, a future which is safe and nurturing no matter where you live, and a future where your life-journey is full of care. Source: Government of South Africa