Western Cape Government publishes first-of-its-kind Municipal Budget Performance Review

The Western Cape Provincial Treasury officially published the 2023/24 Municipal Budget Performance Review today. This first-of-its-kind publication offers a transparent and data-driven snapshot of the financial health of all 30 municipalities in the province for the 2023/24 financial year.

The report can be accessed here.

Western Cape Minister of Finance, Deidré Baartman, said, “We are very proud to publish this report. It is another crucial step to highlighting transparency and accountability on how our resident’s money is being spent at a municipal level.”

Despite fiscal pressures compounded by growing socio-economic and political challenges, the municipalities of the Western Cape have demonstrated resilience and a strong commitment to sound financial management.

“The financial wellbeing of the Western Cape’s municipalities is not something we take for granted. It is a continuous effort. Municipalities, with the support of the Western Cape Provincial Treasury, the Department of Local Government, South African Local Government Association (SALGA) and National Treasury, have worked consistently to maintain their financial health,” Minister Baartman emphasised.

Some of the highlights from the 2023/24 Municipal Budget Performance Review include:

• Strong Revenue Collection: 25 municipalities achieved 95% or above of their revenue targets, resulting in a 7.5% year-on-year real revenue growth. This is an improvement from the negative growth recorded in the previous year.
• Capital Investment: In the 2023/24 financial year, municipalities collectively spent R13.94 billion of which R9.74 billion was spent on infrastructure. New infrastructure spend focused on projects such as the expansion of road networks and upgrading sanitation services.
• Electricity Revenue Recovery: Following a protracted period without load shedding in 2024, municipal electricity revenues rebounded and generated R29.02 billion.
• Efficient Use of Grants and Subsidies: Municipalities successfully utilised 97.5% of operating transfers and subsidies, reflecting improved grant management and enhanced service delivery efficiency.

While this report highlights successes in municipal financial management, it also acknowledges ongoing challenges, including rising municipal debt and underperforming collection rates that need urgent attention. The report also stresses the need for sustainable infrastructure investment and stronger asset management to ensure long-term service delivery. As such, the 2023/24 Municipal Budget Performance Review will be an important guide for municipalities’ strategic planning to strengthen their financial sustainability.

Minister Baartman concluded, “I would like to thank our municipal officials, councillors and financial teams for their dedication and hard work, as is reflected in this report. I am confident that with continued fiscal discipline and good governance, our municipalities will become integral drivers of economic growth and service delivery excellence for the people of the Western Cape.”