2025 Budget sets out the pathway to fund our vision for Growth and Jobs

Honourable Speaker,

Our Premier called on our Government, Members of this House and the people of the Western Cape to ‘Step Up’ and the 2025/26 Main Budget sets out the pathway to fund our vision for Growth and Jobs.

South Africa is in a difficult fiscal environment. Money is tight and the demand for government to deliver more, and for more people, is rapidly increasing.

PROVINCIAL ECONOMIC OUTLOOK

The Western Cape economy continues to demonstrate resilience and economic growth, with projected growth of 0.9 per cent in 2025 and 1.4 per cent in 2026.

Our provincial economy has rebounded from the pandemic, with our unemployment rate now at 19.6 per cent, the lowest in the country and employment growing by 12.4 per cent since pre-pandemic levels.

Speaker, however, we simply cannot keep up with population growth at 19.6 per cent, outpacing our economic and job growth gains.

While we have made impressive inroads over the past decade, we must do more and we will be stepping up to create a prosperous and safe Western Cape where businesses can grow, jobs can be created and communities can thrive.

2025 BUDGET

Provincial Receipts

Speaker, we have tabled a R269.5 billion budget to be implemented over the next 3 years.

95.4 per cent of our total provincial budget will thus come from the national government, with the rest amounting to own receipts. 

As part of our provincial equitable share over the MTEF, we received R1.5 billion for Compensation of Employees resulting from the national wage agreement, as well as R113 million for the Presidential Youth Employment initiatives for teacher assistants for 2025/26 financial year.

Provincial Payments and Provisions

Our 2025/26 Financial Year budget of R89.316 billion, of which

• R87.986 billion to Departments, 
• R57.3 million in direct charges for the Provincial Parliament, 
• R1.02 Billion to our Reserves to mitigate disasters and unexpected external shocks;
• R176.945 million for our Asset Reserve for upcoming infrastructure projects; and 
• R73.529 million for our Energy and Water Reserve for upcoming projects.

BUDGET POLICY PRIORITIES

Speaker, our R269.524 billion Budget to Step up for Growth and Jobs, will allocate

• R43.789 billion for Growth for Jobs;
• R3.955 billion for Safety;
• R194.928 billion for Educated, Healthy and Caring Society; and
• R23.439 billion for Innovation, Culture and Governance.

GROWTH FOR JOBS

Speaker, our Growth for Jobs priority aims to create a R1 trillion economy by 2035, growing at 4–6 per cent annually and creating 600 000 jobs. 

To achieve this, we spend R43.789 billion over the MTEF, implementing 155 G4J projects across key economic drivers and departments. 

Investment Growth

To drive investment growth, we will set aside R26 million for key investment summits, for leveraging the G20 & B20 summit; hosting the Regional Leaders Summit; and launching our inaugural provincial Investment Summit, aiming to unlocking R1 billion worth of investment into the Western Cape.

Energy and Water Security

We will allocate R382.874 million over the MTEF across 17 energy programmes to reduce reliance on Eskom, support businesses in keeping their doors open and create job opportunities in the green economy. We will further reconfigure the Energy reserve to the Energy and Water Reserve, as we wish to secure an additional 220 million cubic metres of water annually by 2030. 

Disaster Preparedness and Response

Speaker, to safeguard our residents, infrastructure and our economy, we will allocate R205.833 million over the MTEF for disaster preparedness and response.

Infrastructure

Infrastructure is the foundation of a growing economy. Over the next three years, we are investing R30.879 billion in 924 projects, ensuring communities have access to better roads, housing, schools and healthcare facilities. 

Mobility

To support mobility, we will invest R8 million over the MTEF in a Freight Rail Revitalisation Framework to ease bottlenecks and boost port efficiency, and R4 million in 2025/26 for the Intertown Rural Transport solution, providing transport solutions between rural towns.

SAFETY

Speaker, the safety of our residents and businesses is a fundamental priority. We will thus, over the MTEF, allocate R3.955 billion to Safety programmes, including R1.311 billion for LEAP, K9 units and Law Enforcement Reaction Units. 

To support victims of Gender-Based Violence (GBV), the Department of Social Development will receive R235.238 million for the Victim Empowerment Programme, R822.186 million for Child Protection Services, and R353 million for the Family Strengthening Programme.

To tackle the scourge of gangsterism in our communities, R96.650 million is allocated to the Provincial Joints Anti-Gang Priority Committee over the MTEF to support efforts to dismantle criminal networks. 

Through these investments, we will create safer communities across the province.

EDUCATED, HEALTH AND CARING SOCIETY

Speaker, when looking towards our spending on social services, as a percentage, the Western Cape government will spend 80 per cent of our total budget on social services, allocating

• R101 billion for Education;
• R100 billion for Health and Wellness;
• R8.4 billion for Social Services; and 
• R6.4 billion for Housing and Community Amenities.

Education

We will invest R101 billion in Education over the MTEF, of which we will spend R74.283 billion on Compensation of Employees (74.28 per cent).

We will invest R4.388 billion over the MTEF in Early Childhood Development;

We have secured R2.298 billion over the MTEF received via the Budget Facility for Infrastructure (BFI) for the Western Cape Rapid Schools Build Programme for education infrastructure; and

We will spend R113.535 million in 2025/26 for the implementation of the Presidential Youth Employment Initiative for teacher assistants.

Health

Speaker, in Health we will invest R100 billion over the MTEF to strengthen our health systems, of which we will spend R60.223 billion on compensation of employees (60.22 per cent); and

R295 million has been provisionally ring-fenced for the Tygerberg Hospital Redevelopment health technology in 2027/28 through BFI funding. 

Social Development

We will invest R8.4 billion in our Department of Social Development. 

We will alleviate the workload of social workers through the Social Worker Integrated Management System (SWIMS) application, allocating R4 million for its development and rollout;

We will increase our subsidies for Services to Older Persons, Persons with Disabilities, and Social Relief for humanitarian and disaster response by R121.987 million (a 10.94% increase from 2024/25). And we will allocate R15 million over the MTEF to provide humanitarian relief.

These investments are laying the groundwork for an educated, healthy and more caring Western Cape.

INNOVATION, CULTURE AND GOVERNANCE

The Western Cape Government wants to harness towards Strong Municipalities, a Future-Fit province leveraging technology for service delivery, and diversifying our revenue sources. To this end, R23.439 billion is allocated towards Innovation, Culture and Governance.

CONCLUSION

Speaker, I want to reiterate a point I made last week - this Budget is not just about numbers on a page, it is a plan to grow our economy and create jobs; and I hope we will all engage in the various programmes of this budget to leverage our fiscal maturity towards Growth and Jobs. 

We will do everything we can to achieve this vision - Kaalvoet oor Tafelberg, as ons moet.

I thank you.