Premier Alan Winde requests imminent reductions in 2023 Medium Term Expenditure Framework
29 August 2023
The Premier of the Western Cape has written to President Cyril Ramaphosa requesting that imminent reductions in the 2023 medium term expenditure framework (MTEF) be urgently placed on the agenda of the upcoming President’s Coordinating Council (PCC) meeting scheduled for Friday, 1 September 2023. The fiscal emergency has, in large part, been created by the conclusion of the 2023/24 and 2024/25 public service wage settlement without the requisite funding to sustain such settlement.
“South Africa’s deteriorating fiscal position poses a considerable risk to, among others, essential service delivery. It is for this reason that I have repeatedly requested that this issue be discussed at the PCC as a matter of urgency,” said Premier Alan Winde.
The provincial government has previously written to President Ramaphosa emphasising that the fiscal challenges arising from budget reductions faced by the WCG would be severe. It would not be possible to protect frontline services, such as health care, education, and social development. The Premier stressed that this would likely exacerbate frustrations and grievances in communities across the country.
He added, “Severe expenditure reductions that harm basic, constitutionally mandated services are not credible nor rational. Residents, particularly the most vulnerable, will bear the brunt of these budget cuts due to the significant negative impact on service delivery. Provinces should not be forced to absorb the budget shortfall as a result of the 2023 public sector wage agreement. National Government cannot commit provinces to expenditure by concluding wage agreements on their behalf, without providing the requisite funding.”