Cape Town Mayor Geordin Hill-Lewis has made a desperate plea to Finance Minister Enoch Godongwana, ahead of today’s budget speech, not to reduce grant funding to municipalities and provinces.
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On Monday, Hill-Lewis urged Godongwana to protect grant funding and equitable share allocations to municipalities for the next three years.
‘We strongly object to any further anti-poor budget cuts to national funding, which would mean even deeper cuts for Cape Town’s pro-poor spending priorities – particularly for basic services and housing,’ he said.
Over R107 million has already been cut from Cape Town’s housing and informal settlements grants in the current fiscal year 2023/24, as part of nationwide cuts announced in last year’s medium-term budget policy statement.
‘Rather than cutting spending that actually delivers to the poor, cuts should come from government departments that serve no meaningful purpose,’ added Hill-Lewis. ‘There are also billions in unnecessary funding going towards Ministerial VIP security, estimated to be in excess of R3 billion.’
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Hill-Lewis also advocated for an increased equitable share for Cape Town.
The mayor cited Census 2022 data, which showed that Cape Town’s population had increased by 27%, to 7.4 million.
‘We understand that equitable share funding to municipalities and provinces is under threat in this new budget. Actually, what we want to see is an increased share for Cape Town, as the census confirms that we will soon overtake Johannesburg as South Africa’s biggest city with over five million residents,’ he said.
The City’s Urban Settlements Development Grant (USDG) and Informal Settlements Upgrading Grant (ISUPG) were cut by a total of R107 million for the current 2023/24 financial year, as announced in the minister’s October 2023 Medium-Term Budget Policy Statement.
The mayor also requested that the budget speech include a commitment to the devolution of passenger rail. For a long time, the City has pushed for railway control and management.
‘Budgets are a reflection of government priorities, and Cape Town hopes to see a budget commitment to devolving passenger rail to capable metros over the three-year budget in line with the stated national policy. President Ramaphosa’s State of the Nation was silent on the delayed national Rail Devolution Strategy,’ he said.
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Hill-Lewis stated that getting trains running smoothly is critical for the economy and households.
‘We have made a standing offer to form a joint committee with the national government to fast-track devolution. But if the president and his Cabinet again fail to act with urgency, this will ultimately necessitate an intergovernmental dispute.’
‘Commuters cannot wait indefinitely for a clear deadline on handing over passenger rail in Cape Town,’ he said.
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Picture: CoCT/ Supplied