Picture: for illustration purposes
The Western Cape government has made a key demand as Finance Minister, Enoch Godongwana, prepares for the upcoming Medium-Term Budget Policy Statement (MTBPS). Premier Alan Winde and the province's finance MEC, Mireille Wenger, are calling on the national government to put people-first, prioritizing service delivery over the investment in the country's failing State-Owned Enterprises (SOEs).
Wenger argued that adjustment focus in the budget should be predominantly on vital services, such as schools and hospitals as well as supporting the most vulnerable in the communities. She noted, "The last thing South Africa and the Western Cape need is for failing SOEs to be continually bailed out at the detriment of the provinces’ constitutional obligations."
Relating a broader perspective on the economy, Wenger stressed the private sector's role as the engine for economic growth and job creation. She warned against using borrowed funds to further finance failing SOEs. "Borrowing more good money to throw after bad is not beneficial. We need every available rand to be working for the South African people," she expressed.
Further, Wenger also revealed that the provincial administration would watch any intentions to cut funding to provinces vigilantly. This move signifies the government's readiness to protect their citizens amidst challenging fiscal decisions.