Premier
In relation to the fiscal crisis currently experienced by the national government:
- What is the expected effect of a national government’s budget shortfall on the province;
- whether the National Treasury has engaged with the Western Cape provincial government on (a) potential effects and (b) mitigation; if so, what are the relevant details?
- The main effect of the national government’s budget shortfall for the Province is reduced revenue (from national government) and to potentially absorb the costs of the 2023 wage agreement.
(2)(a) Yes, engagements on potential effects took place at both executive and administrative level and are ongoing.
(b) The National Treasury has advised national departments and provinces by issuing a cost containment letter and guidelines, which have been attached to this reply.