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The Provincial Parliament’s Budget Committee has unanimously agreed to support the Division of Revenue Bill (DoRB) through its negotiating mandate, with a shared commitment to ensuring that national fiscal allocations reflect the real pressures facing the Western Cape.

The negotiating mandate contains several key recommendations. Chief among them is the need for National Treasury to urgently allocate the remaining funding for the Tygerberg Hospital mega-project, which has been delayed despite its prioritisation through the Budget Facility for Infrastructure.

Furthermore, the Western Cape continues to experience rapid population growth, with the province’s population having increased by more than 19 percent over the past decade. This places mounting pressure on schools, hospitals, housing, and local infrastructure. It is essential that national government recognises this demographic reality by revising the provincial equitable share formula to align with the latest census data and service delivery demands.

The Budget Committee further recommended that National Treasury provide a detailed breakdown of the financial implications of the recent public sector wage agreement and its impact on provincial funding allocations. Without clear planning, such agreements risk undermining fiscal stability at the expense of service delivery.

There was also strong agreement that more support is needed for local governments facing revenue constraints and disaster recovery backlogs, as well as for high-growth economic sectors such as agriculture. In line with the Western Cape’s Growth for Jobs strategy, resources must be deployed where the potential for economic expansion and job creation is greatest.

The Western Cape’s NCOP delegate will now carry this negotiating mandate forward in discussions with National Treasury. The DA is confident that these constructive recommendations will contribute meaningfully to the ongoing national budget process.

Peter Johnson MPP said, “It is encouraging to see that all political parties in the committee rallied behind a common cause: fair and responsive budgeting. For the Western Cape Government to continue delivering for our people, the national government must ensure that resources follow the growing need. These recommendations reflect on-the-ground realities and offer practical solutions for a more equitable and sustainable fiscal future.”

Issued by Peter Johnson, MPP - DA Western Cape Spokesperson on Finance and Budget