MTBPS: Public sector wage bill killing growth and hope
1 November 2023
Responding to the Medium-Term Budget Policy Statement (MTBPS), delivered by Finance Minister, Enoch Godongwana today, Premier Alan Winde and provincial Minister of Finance and Economic Opportunities, Mireille Wenger, expressed their dismay at the lack of a clear and bold plan to drastically boost economic growth and job creation.
“In-year cuts, meaning funding that had already been allocated to the provincial government in the Main Budget in February of this year, and which now must be cut due to national governments’ mismanagement of the economy and specifically the centrally agreed-to public sector wage bill, will devastate economic recovery and any possibility of the kind of growth we need to lift more people out of poverty. Essentially, these cuts are compromising the Western Cape’s ability to provide frontlines services, such as education and health. This is simply unforgivable,” said Minister Wenger.
Premier Alan Winde said, “I am deeply disappointed in the MTBPS. Our finances are already under pressure. We simply cannot absorb the agreed increases to the public service wage bill. It is our duty – as it is national government’s - to protect frontline services at all costs! The needs of our citizens are of utmost importance.
He reiterated, “Provinces should not be burdened with the centrally negotiated public sector pay increase. This will be disastrous for service delivery.”