MTBPS2023: Service delivery above more debt servicing

31 October 2023

Ahead of the Medium-Term Budget Policy Statement, to be delivered by Finance Minister, Enoch Godongwana tomorrow, Western Cape Premier, Alan Winde, and provincial Minister of Finance and Economic Opportunities, Mireille Wenger, set out their expectations.

“The choices the national government makes in this adjustment budget will set the tone for the main budget in March next year. It is more vital than ever that Minister Godongwana holds the line on throwing good money after bad, and sends a clear message that poorly run State-owned Enterprises (SOEs) should not be entitled to yet more money. The Minister and national government must place the needs of our residents above those of the country’s failing SOEs.” said Premier Winde.

“Minister Godongwana must deliver an adjustment budget that prioritises service delivery where it matters most: the provinces. While I appreciate that he is walking a very narrow and precarious tightrope, now is the time to focus on protecting frontline services - our schools, our hospitals, and our support for the most vulnerable,” specified Minister Wenger.

She continued, “The last thing South Africa and the Western Cape needs is for failing SOEs to be propped up at the expense of the provinces’ ability to deliver on their constitutional mandates. The adjustments need to reflect the principle that it is the private sector that drives economic growth that leads to job creation. Borrowing yet more good money to throw after bad is definitely not the answer. We need every available Rand to be working for the people of South Africa – and that starts with stemming the haemorrhaging by failing SOEs, which are responsible for growth-critical sectors, such as logistics and electricity supply, we need to get our country working again.”

“We will be monitoring very closely any intention to cut funding to provinces through the Provincial Equitable Share, in order to accommodate the public-sector wage increase. This agreement was centrally negotiated and agreed to by national government. National government should, therefore, foot this enormous bill. Any cuts in funding to the Western Cape will compromise our ability to fulfil our constitutional mandate to deliver quality frontline services. We will exhaust all means necessary to prevent this,” concluded Premier Winde.

Issued by Regan Thaw, Media Liaison Officer, Office of the Premier, 31 October 2023