Finance

(a)   Critical risks facing the Province

• South African economic growth and tax revenue collection outlook remains weak.
• Major transversal service delivery risks include the impact of the drought on the economy,

       increasing population growth and urbanisation and the impact of crime on society.

• The implementation of voluntary severance packages could result in the possible losses of

       critical skills.

• Conditions are affecting municipal sustainability and there will likely be a need for increased

       support from the Western Cape Government.

 

The theme of the 2018 Western Cape MTBPS is Consolidation for Maximum Citizen Impact. It is about balancing maximum service delivery and citizen impact whilst taking cognisance of the economic, fiscal, environmental and service delivery risks. 

Key Announcements: Maximum Citizen Impact

• Health: R475 million additional allocations to the Department of Health over the 2019 MTEF will be used for the maintenance of Tygerberg Hospital.
• Health: As a result of service load pressures, the Department of Health will receive additional

allocations of R100 million in 2019/20, R200 million in 2020/21 and R211 million in 2021/22.

• Crime: In order to create safer communities, to implement a regulatory impact assessment and the use of camera technology, the Department of Community Safety will receive additional allocations of R30 million in 2019/20, R50 million in 2020/21 and R 52.750 million in 2021/22.
• Education: An allocation of R663.750 million will be allocated to the Department of Education over the 2019 MTEF to deal with service load pressures in pro-poor interventions, eLearning, curriculum interventions and infrastructure interventions. Pro-poor intervention pressures include reducing the educator backlog and providing for learner growth. eLearning intervention pressures include providing ICT teacher professional development and repairing and maintenance of the Local Area Network. The allocation for service load pressures amounts to R150 million in 2019/20, R250 million in 2020/21 and R263.750 million in 2021/22.
• Public Transport: To address public transport requirements for rail enforcement teams, the City of Cape Town Memorandum of Agreement, rail oversight legislation and delivery system and the provincial transport authority, allocations to the Department of Transport and Public Works amount to R50 million in 2019/20; R100 million in 2020/21; and R105.500 million in 2021/22.
• Atlantis Special Economic Zone: In addition to what has already been provided in the baseline of the Department of Economic Development and Tourism, an allocation of R77.356 million is made over the 2019 MTEF (R23.737 million in 2019/20; R26.092 million in 2020/21; and R27.527 million in 2021/22) towards the establishment of the Atlantis Special Economic Zone.
• Agriculture: To address the creation of economic opportunities, agri-processing, export promotion and market access, rural development coordination and implementation, responding to the 4th Industrial Revolution, and climate change adaptation and mitigation in order to make the Agricultural Sector more resilient in the Province an additional allocation of R132.750 million is made to the Department of Agriculture over the 2019 MTEF (R30 million in 2019/20; R50 million in 2020/21; and R52.750 million in 2021/22).
• Economic Stimulus: Additional funding of R132.750 million to the Department of Economic Development and Tourism over the 2019 MTEF (R30 million in 2019/20; R50 million in 2020/21; and R52.750 million in 2021/22) is aimed at stimulating economic growth for the Western Cape. This allocation is aimed at increasing job opportunities, especially for young people through an increased support mechanism for Small, Medium and Micro Enterprises in a non-metro spatial environment such as Bredasdorp, Clanwilliam, Hermanus, Riebeek West, Swellendam, Caledon, etc. which underpins the towns economy and creates substantial jobs.
• EPWP: Over the 2019 MTEF, the Western Cape Government’s additional contribution to the EPWP totals R99 million aimed at creating work opportunities across the social and economic sectors. The programme provides short-term job opportunities for unemployed people and aims to provide training for participants to acquire the relevant skills to enter the job market.
• Saldanha Bay IDZ: The Saldanha Bay IDZ will receive additional funding amounting to R14.2 million over the 2019 MTEF (R9.6 million in 2019/20 and R4.6 million in 2020/21) to strengthen and support the operational requirements in the establishment of the Saldanha Bay IDZ.
• The creation of opportunities for growth and jobs is the joint responsibility of the Western Cape Departments of Economic Development and Tourism, Agriculture, Transport and Public Works, and Environmental Affairs and Development Planning. Over the 2019 MTEF, R31.587 billion will be collectively dedicated to creating opportunities for growth and jobs.
• The pursuit for improved learner outcomes and creation of opportunities for youth is the joint responsibility of the Western Cape Departments of Education, Social Development, Community Safety and Cultural Affairs and Sport. Over the 2019 MTEF, R86.524 billion will be collectively dedicated to improve learner outcomes and to create opportunities for youth.
• Increasing wellness, safety and tackling social ills is the joint responsibility of the Western Cape Departments of Cultural Affairs and Sport, Transport and Public Works, Health, Social Development, and Community Safety. Over the 2019 MTEF, R114.296 billion will be collectively dedicated to increase wellness, safety and tackle social ills.
• Improving resilience, sustainability, quality and inclusivity of urban and rural settlements is the joint responsibility of the Western Cape Departments of Environmental Affairs and Development Planning, Agriculture, Human Settlements, as well as Transport and Public Works. Over the 2019 MTEF, R37.759 billion will be collectively dedicated to improve resilience, sustainability, quality and inclusive urban and rural settlements.
• Embedding good governance and integrated service delivery is the joint responsibility of the Western Cape Departments of the Premier, Local Government and the Provincial Treasury. Over the 2019 MTEF, R6.599 billion will be collectively dedicated to embed good governance and integrated service delivery.
• R86 billion for youth and improve learner outcomes.
• Infrastructure investment: R29.5 billion over the next 3 years: R1.7 billion more than in the 2018 budget
• 10-year Infrastructure Plan: The Western Cape Government created a Long Term Financing Plan to support the Infrastructure-led growth strategy resulting in an additional investment of R6.8 billion over the next ten-year period up to 2028/29.

 

• • R2 billion into Tygerberg hospital
  • R3.5 billion into Roads
  • R1.5 billion into Maintenance