Following the third and final tabling of the national budget, the Western Cape Government cautiously welcomed the limited additional funding for health and education.
Premier Winde acknowledged the difficult fiscal climate but expressed relief that key compromises were made, particularly the scrapping of a proposed VAT hike.
“The 2025 budget process has been difficult and contentious, but we are relieved that key compromises have been made and that already over-burdened citizens will be spared from the punishing VAT hike proposed in the previous two budget frameworks. Our province and country need a budget that fast-tracks economic reforms, cuts wasteful expenditure, and reprioritises spending towards economic growth and job creation. We must urgently implement measures outlined in Operation Vulindlela such as improving the freight and logistics sector.” he said.
READ MORE: Budget 2025: Godongwana confirms no VAT Hike, but fuel levy will increase
Winde highlighted concerns about the province’s growing population and shrinking fiscal support, calling for adjustments to the Provincial Equitable Share formula to better reflect population growth and reward good governance.
“We remain concerned about the weakening fiscal environment. This is why we will continue to push for and implement economic policies that drive breakout economic growth. While we acknowledge these additional allocations for health and education will only come into effect in the adjustment budget later this year, the main budget provides provinces with a clearer understanding of how we will manage the significant fiscal challenges over the current financial year.”
The Western Cape budget will be tabled within the next fortnight.
“The Western Cape Government aims to table its new budget in the first week of June 2025. We also urge all municipalities in the province to table and adopt their budgets by the end of June, in line with legislative timelines, and to ensure that service delivery continues to reach our communities uninterrupted,” said the Western Cape Minister of Finance Deidré Baartman.
