Minister Maynier's response to Budget 2020
The Minister of Finance, Tito Mboweni, has lost control of our public finances and provinces will have to absorb significant budget cuts over the medium term to bailout zombie state-owned enterprises, which risks compromising service delivery in provinces like the Western Cape.
The fact is that provinces will have to absorb a R7.3 billion reduction in equitable share, a R18 billion reduction in conditional grants and part of the proposed R160.2 billion reduction in the public sector wage bill, over the medium term between 2020/21 and 2022/23.
However, the full horror of national government’s mismanagement of our public finances is reflected in the fact that, despite imposing significant budget cuts on provinces, national debt still spirals out of control over the medium term to a terrifying R4.38 trillion, or 71.6% of GDP, in 2022/23.
To put this in perspective, national government will be spending R290 billion on debt service costs in 2022/23, which is a staggering R239 billion, or 5 times, more than we will spend on delivering frontline services such as education, health and social development this financial year -2019/20 - in the Western Cape.
We will do everything possible to protect spending on frontline services such as education, health and social development in this province and we will be setting out our response when the budget is tabled in the provincial legislature on 10 March 2020 in the Western Cape.
Media Queries:
Francine Higham
Spokesperson for the Provincial Minister of Finance and Economic Opportunities
(Responsible for the Provincial Treasury and the Department of Economic Development and Tourism)
Tel: 021Â 483 4327
Cell: 071 087 5150