The Western Cape Government has declared an intergovernmental dispute with national government.
The dispute relates to the public-sector wage
bill, which was implemented after the Western Cape Provincial Parliament
approved the annual budget, leading to in-year budget cuts.
Western Cape Finance & Economic
Opportunities MEC, Mirelle Wenger, said the shortfall amounts to R1,1 billion.
According to Wenger, schools, clinics,
hospitals and roads will be heavingly impacted
“Our national budget process has completely
collapsed. There is no certainty over the next three years of the MTEF, and
now, there is no certainty in the current financial year, with cuts being made
in an unprecedented way, in-year. The failings of the national budget process
mean that we aren’t budgeting for three years, we aren’t even budgeting for one
year anymore. We are working on pay-as-you-go budgeting.”
“Through this action, we are trying to avoid
dramatic reductions in service delivery spending in order to cater for the wage
liability. We have tried to engage with national government to avoid this
situation, to no avail. And for this reason, we have taken the difficult but
necessary step of declaring an intergovernmental dispute,’’ she added.
Western Cape Premier, Alan Winde, says this
problem will not just affect the Western Cape, but other provinces as well.
“From the start of this process it was evident
we could not afford this wage deal and all warning signs of the irrationality
of the agreement were seemingly ignored. This is an issue that affects all
provinces and every government department. What is desperately needed is
prudent fiscal consolidation, management, and discipline. This appears to be
lacking in national government.’’
ARCHIVE: Premier Alan Winde being interviewed at Bush Radio “Our
highest priority is protecting our citizens from the eventual impact of this
nonsensical approach to managing the country’s finances. We will do everything
we can to keep providing the best possible services for our residents even in
the face of this calamity,’’ added Winde.
Done By: Mitchum George
No comments:
Post a Comment