Western Cape Provincial Treasury's Quarterly Report & Performance

The Select Committee on Finance met to engage on the quarterly performance of the Western Cape Provincial Treasury. The province's three-year budget of R270 billion was discussed, with more than 80% of this amount allocated to social services, including education, health, social development and housing. Approximately R43 billion was earmarked for growth and jobs programmes, while just under R4 billion would be spent on social initiatives. The Member of the Executive Council highlighted the challenges faced due to population growth and limited resources, and framed the budget as a “step-up” effort to stimulate the economy and improve service delivery. The Treasury outlined the economic context and fiscal outlook, stating that the province had experienced sluggish gross domestic product growth of 0.8% annually over the last decade. While the unemployment rate remained among the lowest in South Africa at 19.6%, youth unemployment was higher at 27.2%. Despite progress in reducing income inequality and improving the Human Development Index, poverty remained widespread. The presentation covered several key strategies and projects, including the Atlantis special economic zone (SEZ), the Saldanha Bay industrial development zone (IDZ), and the provincial energy resilience programme. Challenges such as infrastructure backlogs, climate-related water scarcity, loadshedding, housing shortages and trade threats from new U.S. tariffs, were highlighted. Despite strong audit outcomes, underspending was noted across departments, particularly due to delayed grant disbursements. Nonetheless, the Western Cape had achieved 85.7% clean audits and continued to lead the nation in governance practices. The Provincial Treasury flagged several fiscal risks, such as declining transfers, rising service delivery demands, and rigid conditional grants that reduced budget flexibility. Oversight concerns were raised about national funding allocations not keeping pace with population growth and infrastructure needs in marginalised communities. During the discussion, Members raised a wide range of concerns. These included the extent of Eskom debt, water scarcity regulations, overcrowded classrooms, the impact of taxi impoundments in Cape Town, debt collection practices from unemployed hospital patients and the omission of gang violence from the safety discussion. They queried audit findings related to performance information, annual performance plan alignment, housing targets, and irregular expenditure. A Member asked for clarity on project implementation and the impact of the Basic Education Laws Amendment (BELA) Bill, while another focused on agriculture underspending and housing shortages. Overall, however, they commended the province for its record of strong governance. The Chairperson concluded the meeting by acknowledging the quality of the presentation and responses. She reiterated the Committee’s commitment to ensuring that financial reports translate into real outcomes for communities and encouraged the Western Cape to continue working collaboratively and to serve as a model for other provinces.