90% of national govt grants to WCape cut in real terms – DA

Treasury is making it ever more difficult for provincial govt to serve needs of residents

90% of National Government Grants to WC Government cut in real terms

24 April 2023

The Division of Revenue Bill for 2023 has seen real decreases in funding to 20 out of 22 key conditional grants that the Western Cape Government receives from National Government. This is despite a record of good governance and unqualified audits for all Western Cape Government departments in the 2021/22 financial year, the latest year fully audited by the Auditor General South Africa.

A breakdown of the cuts can be seen here:

Conditional grants are transfers from National Government to provincial governments that can only be used for a specific predetermined purpose.

It is important to note the impact of inflation, which stands at 7.1% year on year for March, when considering grant allocations and the budget at large. This impact means that any increase to allocation below inflation is in reality a budget cut.

When inflation is taken into account, only 2 out of the 22 grants given to Western Cape saw real increases, while 11 saw outright decreases year-on-year. Some grants, such as the Expanded Public Works Programme Integrated Grant and the Mass Participation and Sport Development Grant, are being cut by more than 30% outright.

MPP Deidré Baartman says: “The DA strongly rejects the cuts to the Western Cape’s grants from National Government. Conditional grants form a very important part of Provincial Government budgets. The ANC, through their over-centralisation of government funds, is making it ever more difficult for the Western Cape Government to serve the needs of our residents.

The people of this province are getting less money for education, an area where only a single grant has seen a real increase. In terms of healthcare, no grants have increased. With the lack of good governance elsewhere in the country, it is unacceptable that the one provincial government that does not steal or waste their residents’ money is being punished for it.”

Issued by Deidré Baartman, DA Western Cape Spokesperson on Budget, 24 April 2023