Outcomes of Western Cape Government Cabinet meeting

On Wednesday, 4 September 2024, Premier Alan Winde chaired a meeting of the Western Cape Government (WCG) Cabinet.

2025 Budget process underway

The Western Cape Government’s Provincial Treasury is already hard at work on preparing the Western Cape Medium-Term Budget Policy Statement and the 2024/25 Adjustments Budget. Cabinet received a presentation on the WCG’s proposed approach to the upcoming budgetary process.

The Premier stated, “Yesterday we received the deeply worrying news that our country’s economy only grew by 0,4% is the second quarter of this year, if we are going to succeed as a country and a province, we must double down on our efforts to grow the economy much faster. It has been an exceptionally difficult time for our province and country from a financial perspective. In-year budget cuts forced on us by national government are placing our finances under immense pressure, impacting frontline services for our residents. I appreciate the hard work of our Provincial Treasury team, led by Minister Deidré Baartman, and her Head of Treasury, Julinda Gantana in ensuring our budget processes are transparent and credible, despite the tough conditions in which we operate.”

Cabinet noted that the Western Cape is at a critical juncture as economic challenges persist, and public service pressures heighten, which require fiscal discipline and credibility.

It was underscored by Cabinet that due to slow economic growth; the provincial budget is being formulated within a very tight fiscal environment.

Provincial Treasury will work closely with provincial departments to explore alternative funding options. Premier Winde said, “We must continue to push the implementation of Operation Vulindlela to unlock the considerable potential of the province and country’s logistics sector. If we get this right, we can achieve much higher economic growth and more jobs.”

Gross Domestic Product (GDP) growth

Cabinet noted the latest data from Statistics South Africa which shows that South Africa’s economy grew by 0.4% in the second quarter of the 2024/25 financial year. “We must work harder than ever to jumpstart our economy with businesses and entrepreneurs creating more jobs,” stated the Premier.

Provincial Economic Review and Outlook 2024

Cabinet noted the draft of the Provincial Economic Review and Outlook (PERO) 2024, drawn up by Provincial Treasury, which is being circulated for consideration and input, in preparation for its tabling.

The PERO informs the 2024 Medium-Term Budget Policy Statement. It is an annual research publication aimed at informing and guiding policymakers, departments, and municipalities on key economic and socio-economic trends and patterns that will guide policy, planning, as well as budgeting. It is a collaborative effort between Provincial Treasury and government departments

Premier Winde said, “Through the PERO we are leveraging data and evidence to improve service delivery for our residents. This critical document ensures financial sustainability, sound policy and good governance across our government.” 

He added that where tough choices must be made, they will be based on insights from PERO 2024.

The Western Cape Minister of Finance will officially table the PERO on 26 September 2024 in the provincial legislature.

Establishment of Integrated Western Cape Energy and Water and Council

Cabinet resolved to expand the scope of the Western Cape Energy Council, which was set up last year at the height of the load shedding crisis.

Cabinet further resolved to establish an Integrated Western Cape Energy and Water Council. This will continue and intensify the provincial government’s drive toward energy security and water resilience.

The council will guide the government’s approach to the energy and water crisis.

Premier concluded, “We are facing increased pressure from the climate crisis. Just like we took action to tackle the power crisis, we must act now find lasting interventions to better manage our use of water. A reliable, affordable and sustainable supply of water and energy is crucial to growing our economy and enabling more jobs.”