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21 November 2018

The Democratic Alliance in the Western Cape rejects the Division of Revenue Amendment Bill 2018 (DORA), as the legislation calls for provinces to tighten their belts in the face of severe budget cuts, while national government continues to waste billions in public funds on costly bailout schemes instead of addressing the gross mismanagement of the national fiscus.

The Western Cape is the only province in South Africa which has complied with national government’s calls to be financially prudent in the face of year on year of stagnant economic growth for which the ANC at national government is solely responsible.

As it stands, the national fiscal deficit has seen a R22 billion increase in the 2018/19 financial year, increasing to R33 billion in 2019/20, and R41 billion in the 2020/21 financial year. The turnaround strategies for national state-owned enterprises has failed dismally, with South African Airways and Eskom receiving R5 billion bailouts each.

It is inconceivable that the ANC can spend public funds so recklessly, only to instruct the provinces to spend more wisely.

The Western Cape is expected to sustain the best quality governance in the country in the face of severe budget cuts by national government, while our province is placed under further strain by an influx of residents from neighbouring provinces seeking better service delivery.

Each year, more than 20 000 learners from the Eastern Cape seek an education in Western Cape schools. Our province has no budget for this increase in demand, and yet we manage to go above and beyond our service delivery mandate to accommodate these residents. We cannot continue to be expected to serve our growing population while national government continues to cut our budget allocation and expects us to adjust our spending.

The DA in the Western Cape rejects the DORA as it shifts the responsibility to effectively manage the national fiscus onto the ailing provincial budgets. We will not allow the ANC to bulldoze through legislation which erodes financial accountability at national level.

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