Western Cape Adjustment Budget and MTBPS: R1.7bn in new funding to stabilise health and education, scale safety, and accelerate infrastructure delivery

04 December 2025

Tags:

Budget Economic growth Infrastructure News Safety Service delivery

Western Cape Minister of Finance, Deidré Baartman, today tabled the 2025/26 Medium Term Budget Policy Statement (MTBPS) and the 2025 Adjustment Budget in the Western Cape Provincial Parliament.

The theme ‘Scaling for Growth’ sets out how the Western Cape Government (WCG) intends to accelerate economic growth, improve safety, promote dignity and strengthen institutional capacity in a constrained national fiscal environment.

“Scaling requires increasing the province’s economic momentum by expanding infrastructure delivery, strengthening investment, and ensuring essential public services can keep pace with rapid population growth,” said Minister Baartman.

Western Cape Outlook

Minister Baartman noted that the Western Cape continues to outperform the national economy, with projected growth of 1.2 per cent in 2025, driven by strong performance in agriculture, finance, tourism, and sustained investor confidence. The province retains the lowest unemployment rate in the country at 19.7 per cent.

Key highlights from the Adjustment Budget

The 2025/26 Western Cape Adjustment Budget provides R1.739 billion in additional funding, combining national transfers of R1.070 billion and provincial funding of R669 million.

No department’s budget will be cut. Minister Baartman emphasised that the WCG recognises the impact of the national budget process over the past year and will work with all departments to realign funding over the 2026 MTEF.

Allocations include:

R573.6 million for Health to stabilise in-year pressures. A further R139.157 million is provisionally allocated for 2026/27 due to recruitment timelines.
R292.1 million provisionally allocated to Education for educator compensation in 2026/27, also linked to recruitment timelines.
R9 million to Police Oversight and Community Safety for the Mitchells Plain Safety and Development Programme, a new pilot to strengthen crime prevention in high-risk areas.
R3.5 million to Cultural Affairs and Sport for programmes that support youth development and healthier lifestyles through sports and cultural activity as part of crime and substance abuse prevention.
R295 million for Infrastructure, including R114 million for road infrastructure and R181 million to accelerate housing delivery.
R21 million for Social Development for psychosocial support, older persons’ care, and digital systems.

“Every rand in this budget must carry more weight than before. We are scaling for growth because our population is rising, our economy is changing, and our residents expect improved delivery,” said Minister Baartman. “This Adjustment Budget is about building momentum: strengthening essential services, accelerating infrastructure where it matters most, exercising discipline, and protecting the stability that sets the Western Cape apart.”

Please see MTBPS and Budget documents below: