2026 Medium Term Budget Policy Statement: Western Cape Government Urges National Minister of Finance to Prioritise Cost-of-Living Relief Measures, Bolster Safety and Frontline Services Support

Premier Alan Winde and Western Cape Minister of Finance, Deidré Baartman, call on national Minister of Finance, Enoch Godongwana, to announce decisive measures to ease the growing burden on residents caused by South Africa’s runaway cost of living crisis while also addressing the growing financial strain on frontline services and community safety, when he tables the Medium-Term Budget Policy Statement (MTBPS) and Adjustment Budget

Compounded primarily by surging electricity and fuel costs, more households and businesses are struggling to keep pace with inflationary pressures.

These factors continue to place unprecedented pressure on the Western Cape Government and the ability of indigent households to afford even the most basic services.

“The consequences of this are particularly acute for vulnerable residents and households whose income has remained stagnant. Addressing this must be front of mind for Minister Gondongwana. Additionally, provinces are being asked to more with less. Rising costs across healthcare, transport, infrastructure and other frontline services are placing increasing pressure on provincial budgets. The MTBPS presents an opportunity for national government to provide a pathway to tangible relief for residents while ensuring provinces have sustainable funding to maintain frontline services,” stated Premier Winde.

Minister of Finance Baartman said, “The province’s ongoing departmental budget engagements have highlighted the increasing pressure on households and frontline services. South Africans continue to feel the effects of rising fuel, food and transport costs. At the same time, provinces are facing growing demand for social support and frontline services, while the cost of delivering these services continues to rise.”

Minister Godongwana should consider measures to ease the cost of living, including fuel levy relief, which would help reduce transport costs and the cost of goods and services.

One measure, which the Western Cape Government is also developing, is the “Basket of Services”, which the national government should take into consideration. 

Research undertaken by the Western Cape Government and Stellenbosch University indicates that the current package of free basic services for indigent households is no longer sufficient to support a dignified standard of living. The current policy provides qualifying households with, among other services, six kilolitres of water and 50 kilowatt-

Among the suggestions to enhance this “Dignity Basket” are:

• Increasing free allocations of water to 10.5kl per household.
• Moving toward a 150kWh monthly energy threshold.
• Recognising that internet access is essential to enable job-seeking and educational advancement.

Investment in public safety, with stronger funding support for intelligence-led policing, criminal investigations and interventions aimed at disrupting gangs and organised criminal networks, should be also prioritised. 

As Minister Godongwana prepares to table the MTBPS and Adjustment Budget, the Western Cape Government is calling for a credible fiscal plan that provides relief to households, strengthens public safety and ensures provinces have the resources to sustain frontline services. 

Premier Winde concluded, “We have demonstrated in the Western Cape that through strict fiscal discipline, we can still deliver growth and protect our most vulnerable residents. However, the Western Cape cannot carry the weight of national structural failures alone. We expect the National Minister of Finance to table an MTBPS that stops the bleeding on the cost of living, rewards provinces that display clean governance, and aggressively builds infrastructure that enables growth and create jobs.”