Winde calls for ‘fair share’ of funding from Treasury amid population growth

Western Cape Premier Alan Winde has called for the National Treasury to allocate funds to provinces based on their respective population.

This as the Western Cape experiences rapid population growth.

According to Treasury, provinces get their share of funds on the basis of relative needs between provinces, taking into account the demographic and economic profiles of the provinces, among other factors.

Delivering his State of the Province Address (Sopa) in the Western Cape Provincial Parliament on Wednesday, Winde called on Treasury to change its formula for fund allocations.

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“Last year, we were placed in an unacceptable position amid the 2023 Medium Term Expenditure Framework (MTEF) due to the centrally agreed public sector wage bill, well in excess of inflation and way over what was budgeted for,” said Winde.

“Our residents were forced to endure unprecedented in-year cuts, compromising budgets. These budget cuts are hitting frontline government services such as education, health care, and social development the hardest. It is the most vulnerable in society who are feeling the impact most acutely.”

The premier’s office declared an intergovernmental dispute (IGD) with the national government last year. The dispute was resolved.

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“While we pioneered the IGD process, I have given our newly appointed provincial minister of finance very clear instructions to work with the National Treasury to ensure that we get our fair share of national funding,” said Winde.

“We have committed to work with National Treasury and Minister Gondongwana. However, we will not hesitate to act if we feel that that the spirit of cooperation, we achieved in resolving this dispute is broken or compromised.”

Winde: Budget allocation ‘not right’

The Western Cape has the third highest population – the fastest-growing population in the country, said Winde.

However, the province only received the fifth largest budgetary allocation.

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“This is not right, and we are going to fight for what our residents justly deserve.”

“Up to 150,000 people are moving to this province each year. This is because of our commitment to good governance and a jobs-rich economy.

“But this population growth comes with significant challenges. It places increased pressure on us all, especially our budgets.”

The current budget allocation system is “iniquitous” and has to change, said Winde.

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Similar problems are being experienced in Gauteng and KwaZulu-Natal.

“They also deserve their fair share of funding, so that their residents, like ours, get the services they need and deserve,” he added.