Western Cape Government Medium Term Budget Policy Statement 2018
Date: 22 November 2018
Western Cape Finance Minister, Dr. Ivan Meyer, delivered the 2018 Western Cape Medium Term Budget Policy Statement (also known as the “mini budget”) and the Western Cape Government’s 2018 Adjusted Estimates of Provincial Expenditure in the Western Cape Provincial Legislature, today.
The 2018 Western Cape Medium Term Budget Policy Statement (MTBPS) is the Provincial Government Budget Policy Statement covering the 2019 MTEF period and provides the economic and policy context within which the upcoming Provincial budget will be presented.
The Western Cape Government’s 2018 Adjusted Estimates of Provincial Expenditure allows for in-year and immediate service delivery challenges to be addressed, whilst still achieving the 2018 Budget outcomes and principles of fiscal consolidation and fiscal discipline.
The following key announcements for Maximum Citizen Impact was made:
1. 2019 MTEF total budget of approximately R210.8 billion, R5.6 billion additional funds: own funds: R4.1 billion; National R1.5 billion
The total budget for the Western Cape Government over the 2019 MTEF totals R210.8 billion (R66.219 billion in 2019/20; R70.237 billion in 2020/21; and R74.313 billion in 2021/22), which includes additional allocations amounting to R5.6 billion (own funding amounting to R4.1 billion and R1.5 billion national funding).
2. Health budget: R77.7 billion over the 2019 MTEF. R511 million more for increase in service load pressures and medical requirements
The total budget over the 2019 MTEF for the Department of Health amounts to R77.7 billion (R24.364 billion in 2019/20; R25.862 billion in 2020/21; and R27.425 billion in 2021/22). As a result of service load pressures, the Department will receive additional allocations of R100 million in 2019/20, R200 million in 2020/21 and R211 million in 2021/22.
3. Education: R75 billion over the 2019 MTEF. R663.8 million more for teachers, text books and learner requirements
The total budget over the 2019 MTEF for the Department of Education amounts to R75 billion (R23.451 billion in 2019/20; R25.013 billion in 2020/21; and R26.515 billion in 2021/22). An allocation of R663.750 million will be allocated 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.
4. Infrastructure investment: R29.5 billion over the next 3 years, R4.3 billion more than in the 2018 Budget
Over the 2019 MTEF, R29.5 billion will be invested in infrastructure, which amounts to R4.3 billion more than in the 2018 Budget. A key focus remains on the preservation of existing infrastructure assets and addressing infrastructure maintenance backlogs to maximise citizen impact.
5. 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
- Close to R1.6 billion provided to deal with the drought
R1.6 billion is allocated for drought related projects and water security initiatives.
6. R31.6 billion over the next 3 years to create opportunities for growth and jobs
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.
7. R86.5 billion for youth and improve learner outcomes
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.
8. R114.3 billion over the 2019 MTEF to improve wellness, safety and tackle social ills
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.
9. R37.8 billion to enable resilient and sustainable living environments and human settlements
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.
10. R6.6 billion to improve service delivery and embed good governance for results in departments and municipalities
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.
11. Health: Maintenance of Tygerberg Hospital (R475 million over 2019 MTEF; R2 billion over 10 years)
Additional funding amounting to R125 million in 2019/20, R175 million in 2010/21 and R175 million in 2021/22 will be given to the Department of Health for maintenance. Scheduled maintenance at the Tygerberg Hospital has been allocated R150 million in 2019/20, R201.375 million in 2020/21 and R202.836 million in 2021/22 and an aggregate amount of R1.971 billion has additionally been allocated for Tygerberg Hospital until 2028/29.
12. Crime: Regulatory impact assessment and camera technology (R132.8 million over 2019 MTEF)
In order to create safer communities, to implement a regulatory impact assessment and the use of camera technology, the Department will receive additional allocations of R30 million in 2019/20, R50 million in 2020/21 and R 52.750 million in 2021/22.
13. Public transport: Rail (R255.5 million over the 2019 MTEF)
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.
14. Atlantis Special Economic Zone (R77.4 million over 2019 MTEF) 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.
15. Agriculture (R132.8 million over the 2019 MTEF)
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).
16. Economic stimulus (R132.8 million over the 2019 MTEF)
Additional funding of R132.750 million 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.
17. EPWP (R99 million over 2019 MTEF)
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.
18. Saldanha Bay IDZ (R14.2 million over the 2019 MTEF)
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.