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The DA vehemently opposes the proposed cuts to the Western Cape’s budget by the National Treasury, as revealed in the 2023 Division of Revenue Amendment Bill.

The effects of the public sector wage increase, which was centrally agreed to National Treasury, means an increase in the Western Cape’s wage bill of R2.9 billion. National Treasury only allocated an additional R1.7 billion to the province through the Provincial Equitable Share, meaning the Western Cape will need to find R1.2 billion within its current budget to fund the shortfall, perhaps through starting a lemonade stand.

In addition, conditional grants to the Western Cape, which are funds intended for a specific purpose, were cut by over R640 million.

Taking the real effective cut to equitable share as well as conditional grants into account, the total real budget cut for the Western Cape amounts to R1.84 billion.

The disastrous effects of the cuts to conditional grants are seen especially as it relates to infrastructure, as in the case of the Education Infrastructure Grant. The grant is being cut by R156 million, and National Treasury officials confirmed during yesterday's Budget Committee briefing that they do not recommend starting any new infrastructure projects, i.e. building of schools, in the current financial year.

Education is an immediately realisable right, and this directive from National Treasury is extremely concerning given the influx of families to the Western Cape.

All of the conditional grant cuts for the province are attached here.

DA Western Cape Spokesperson on Budget, Deidre Baartman says: “The ANC have mismanaged the fiscus to such an extent that they are placing provinces in an impossible position to deliver frontline services to their residents. The ANC is busy bankrupting provinces. It is especially unconscionable that infrastructure grants have been decimated, as infrastructure investment is one of the keys to increased economic growth.

The DA will not support this bill, and we urge other provinces to put the interests of their residents first, and do the same. Supporting this bill would be immoral.”

Issued by Deidré Baartman, MPP - DA Western Cape Spokesperson on Budget