NATIONAL NEWS - Western Cape Finance MEC, Minister Ivan Meyer, said the economic growth of the Western Cape is expected to accelerate to 1.3 percent in 2017 and two percent by 2018, mainly driven by faster-than-expected growth in the finance, insurance, real estate and business services sector.
He tabled what he called a "pro-poor, pro-growth and pro-job creation" budget in the provincial legislature on Tuesday.
Explaining to citizens how the province planned to deploy its financial resources, Meyer said the bulk of the money would be used for health and education, with the health receiving R21.6 billion or 36.5% of the province's R59 billion while education receives R20.6 billion (34.8%).
Meyer said economic growth and jobs remain the province's number one priority and the only way to fight poverty and ensure social stability.
He highlighted challenges facing the province, including drought and water shortages, fires and food security.
"A new Early Childhood Development grant will benefit children in pre-school centres. Special focus will be on the youth and their skills development initiatives," Meyer added.
The Department of Transport and Public Works has been allocated R7.4 billion (12%) while Human Settlements received R2.5 billion (4.3%); Social Development R2.1 billion (3.6%); Community Safety will get R302 million (0.5%) and Cultural Affairs and Sport R725 million (1.2%).
The rest of the budget has been divided into:
• Economic Development and Tourism R427 million;
• Agriculture R795 million;
• Environmental Affairs and Development Planning R591 million; and
• Local Government R249 million.
The Department of the Premier will receive R1.4 billion, while the Provincial Parliament will receive R137 million and Provincial Treasury R308 million.
Turning to the devastating drought gripping the province, Meyer said: "We are still in the middle of a serious drought which is impacting on both the rural and urban parts of the province."
As a result, Meyer said, the province was now facing an increasing food security risk. Water had been identified as a top priority and an enabler for sustainable growth and development in the province.
"Water security has, however, also been identified as a key risk. Therefore, various initiatives related to water security will be conducted by a number of departments."
Just more than R84 million over the Medium Term Expenditure Framework (MTEF) has been allocated to the departments of Environmental Affairs and Development Planning, Agriculture and Local Government for the development and implementation of an integrated sustainable water security strategy.
Meyer stressed that the country's public sector wage bill had reached unsustainable levels and was disabling other much-needed expenditure programmes aimed at the poor.
Source: SAnews.gov.za
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