WCGov declared an intergovernmental dispute with national government over budget cuts

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