Executive summary of Premier’s speech on the occasion of 2024/25 Adjustment Budget

2024 has had its share of challenges. From multiple natural disasters, in floods and storms, to manmade disasters, such as the horrific building collapse in George in May - our resolve has been tested to its limit. But throughout the resolve of the residents of the Western Cape has persisted. 

I am deeply honoured and humbled to have been successfully re-elected to serve the residents of this special province for another five years. Together we will face head on our challenges and build on the foundations laid to see the Western Cape and all its residents thrive. 

The May general election caused a tectonic shift in our political landscape. Voters made their voices heard through the ballot box, telling us in no uncertain terms that consequential change was desperately needed in our country.

The Government of National Unity has ushered in a new era for our country. We will support the GNU’s work wherever we can, especially where we can leverage it to further grow our economy and create more jobs. We will hold the GNU to account to make sure that it works for the residents of this province. 

But something else happened at the polls on 29 May. You, the residents of our extraordinary province, demonstrated your trust in this government. You have shown immense faith in us to continue working FOR YOU. We will never take that trust for granted.

We know that it must be earned through hard work and a shared desire to move forward and confront the daily challenges we all face.

But right now, the Western Cape and all South Africa’s provinces are in an untenable position. The crisis culminated in 2023 when national government negotiated an unaffordable public sector wage deal, but it has been brewing for a while. Since just 2021this province has had its budget cut by over R8 billion. Funding cuts that have had a direct impact on our frontline services, like teaching, health care and social services.

We are being shortchanged. And we are being shortchanged not just once, but thrice. 

Because apart from the fiscal emergency caused by the centrally negotiated public sector pay increase agreement, questionable and outdated census data also impacts our Provincial Equitable Share. We have the fastest-growing population in South Africa. We are the third largest province in South Africa. And yet, we receive only the fifth-largest amount of funding. 

We are being forced to fight for the funds we need to keep our frontline services working for the people of the Western Cape; to offer quality education and health services; and to build roads and other vital public infrastructure. 

In unannounced visits I have carried out over the past several months, I have seen the immense pressures our medical and social service facilities are under. Our education system too has had to grapple with extremely strained resources.

At the same time, our country’s economy has slowed to a near-standstill. While the Western Cape has continued to outperform the nation, years of load shedding and economically unsound policy at the national level has resulted in near-stagnant economic growth across South Africa.

Bailouts for zombie state-owned entities have cost South Africa dearly. Around half a trillion Rand has been poured into SOEs over the past several years, to the detriment of critical services national government should rather be funding. 

We welcome that the Government of National Unity is working to put us on a path to restore sustainability to our national fiscus and focus on infrastructure and investment that drives our economy and more jobs. But the reckless spending of previous administrations has left us spending unthinkable amounts on debt servicing alone.

As we fight at the highest levels for the funds this province needs, we have to do the best we can with what we have. 

Over the last 4 budgets, the Western Cape’s equitable share has been reduced by R8.4 billion – even as our population has continued to grow, and challenging economic headwinds blow into our economy from the national level.

Luckily Speaker, the people who make up our government have proven themselves able to navigate these incredibly difficult times. 

With each challenge, this government has demonstrated that even in the face of such adversities, we put our best foot forward to maintain stability and certainty in everything we do, especially in managing our budgets. It is only through certainty and a credible fiscal environment that we will be able to confront the challenges we face.

It is thanks to the tireless efforts of the people of our government that we see encouraging signs of growth in the Western Cape, even as the rest of the national economy struggles.

More people are able to find a job in our province than anywhere else in South Africa. 

Over the past few months, 75 000 jobs were created in the Western Cape, taking the province’s unemployment rate to under 20% for the first time in a decade. These statistics are more than just numbers; they represent optimism. With every job there is a glimmer of hope and dignity restored in a household.

What this proves is the potential of this government to leverage any opportunity to grow an economy that create jobs. We must seize upon this momentum, and we must keep working so that more of our residents are able to work and help us take this province forward. 

There is still much to do - too many residents are still unemployed, and together with the unacceptably high youth unemployment rate, this serves as a reminder that our work to create tens of thousands more jobs is far from done.

But this budget gives us the tools we need to keep moving forward, to keep making progress. It paves the way for us to do more for our people, even as we fight for our funding. It allows us to preserve our most important services.  

As we consider Vote 1 of this sitting, I believe it is clear that the allocations made to my own department serve the greater need of delivery for our residents. The Department of the Premier has received a modest 4.73% increase when compared to its initial allocation of just over R2 billion in the main budget for 2024/2025.

However, what is vital to note is that almost every programme within my department has seen its budget either decreased or maintained. This is not because services have been sacrificed; rather, it is because the team in this department, like all others across this government, has worked to find new ways to cut costs wherever possible.  

In several instances, we have been able to give funds back to the provincial revenue fund, while still delivering services like load shedding relief packs and support to independent power producers. We have done this by carefully managing costs and collaborating with various stakeholders to deliver for our residents as efficiently and as conscientiously as possible. Once again, this department maintains the critical balance of spending and delivery. 

The only programme which has received an increase is the Centre for e-Innovation, which has seen its budget adjusted upwards by 10.59%. This increase accounts for the entirety of the additional funding to my department, and it is no coincidence that the programme which will see the benefit of the additional funds is the one which is the most public facing in my department, and which underpins so much of the work this government does.

A large amount of the additional funding has been allocated to fund the shortfall for Microsoft Licenses for our government IT infrastructure. These licenses are a vital part of the tools our officials need to serve our residents, and their cost is a direct result of the Rand/Dollar exchange rate. Additionally, we have also invested in technologies such as Microsoft Azure cloud computing, which has enabled frontline departments like Health and Wellness to find new ways to serve our residents. 

Over the years we have worked incredibly hard to build a resident-obsessed government that can adequately respond to whatever crisis comes our way. We must remain nimble and exercised to respond to any eventuality. We must ensure the quality of our planning and the soundness of our governance . We will keep working, harder than ever, FOR YOU.

I would like to thank our residents. You are at the heart of this government, and we will continue to serve you. It is your resilience and support that helps us to be a better government for you.

To our 90 000 strong Western Cape Government family, your dedication and professionalism are never taken for granted, especially in the toughest of times. You are the heart and soul of this government, giving life to all our programmes, policies, and strategies. Thank you.

Thank you to my team at the Department of the Premier. I am very proud of you all. Your commitment and sense of purpose inspire me to be a better person and Premier for this great province.