13 - IvanMeyer

PROVINCIAL BUDGET: 2017 MTEF
Address to the Western Cape Property Development Forum

Dr. IH Meyer
Provincial Minister of Finance
5 May 2017
Macroeconomic context
Western Cape economic performance
Western Cape growth compared to the rest of South Africa (2004 - 2014)
6 Slowing economic performance

5
Finance, insurance, real estate and
4
business services sector was biggest
% growth rate
3
contributor to growth in 2014
2
1 Construction sector was fastest

0 growing sector over 10 years with
-1 average growth of 6.7%
-2
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Key sectors: Agri processing, tourism
and oil & gas
SA (ex-WC) Western Cape SA (ex-WC) average Western Cape average
Building plans can be used as a
Fastest growing sectors in the Western Cape (2004 - 2014) leading indicator of future building
and construction activity
Construction 6.7
Finance, insurance, real estate & business services 4.5
General government 3.9
Transport, storage & communication 3.8
Wholesale & retail trade, catering & accommodation 3.8
Total 3.7
Agriculture, forestry & fishing 3.3
Community, social & personal services 2.5
Manufacturing 2.4
Electricity, gas & water 0.9
Mining & quarrying 0.3
0.0 2.0 4.0 6.0 8.0

Average growth rate (%)
© Western Cape Government 2012 | Address to the Western Cape Property Development Forum
Approach to 2017 MTEF Budget
Policy principles underpinning the WC budget process
• Constitutionalism • Partnerships
• Evidence Base • Whole-of-society approach
• Public Value • Citizen Centric
• Rule of Law
Fiscal and Budget Policy Approach
Fiscal and Budget Policy Principles:

• Allocative efficiency: allocation of resources towards
priorities of government to programmes that are effective
• Fiscal consolidation: which generally entails reducing
government expenditure and/or increasing revenues
• Fiscal sustainability: maintaining stability in key government
programmes and managing risks
• Fiscal discipline: being financially accountable by ensuring
that there is no irregular or wasteful spending by any
department or entity
The 2017 Provincial Budget
Theme: Budget for Growth
1.Inclusive
2.Sustainable Government
3.Smart Growth
1.Infrastructure – led growth
2.Growth potential: Towns Regions
3.Asymmetrical
Budget Policy Priorities
Provincial Strategic Plan 2014 - 2019
Budget Policy Priorities [1]
PSG 1: Promoting investment and providing support to key economic sectors, artisan
and technical skills, ease of doing business, green economy and toward
infrastructure – led growth
Project Khulisa Ease of doing business programme
Saldanha Bay IDZ Agriculture
Atlantis SEZ Energy Security Game Changer
Catalytic Infrastructure Apprenticeship Game Changer
PSG 2: Improving Language and Mathematics, Matric pass rate, Quality education
in poorer communities, e-Learning, Early Childhood Development, Grade R,
Youth Development and After School Programme
No-fee schools and learner transport
Youth Cafés
scheme
Chrysalis Academy
Collaboration Schools
eLearning Game Changer
MOD programme
After Schools Programme
Year Beyond
Budget Policy Priorities [2]
PSG 3: Inclusive, healthy and safe communities and families and children, social
development services for the poor and most vulnerable and alcohol harms reduction
WoW
1st 1000 days Supporting arts and culture
90-90-90 campaign Community Safety Improvement
Integrated Service Delivery Model Western Cape Police Ombudsman
Services to persons with disabilities, Road safety
children and older persons
PSG 4: Integrated Human Settlements, Spatial and development planning, sustainable

ecological (water and climate change) and agricultural resource-base and Better
Living Model
Catalytic housing projects Water security/drought/climate change
RSEP/VPUU Fire and disaster management
Provincial Spatial Development Plan Better Living Model Game Changer
PSG 5: Enhanced Governance, Integrated Management, Inclusive Society and Broadband

Good financial Management Data Governance
Supporting Municipalities Broadband Game Changer
Infrastructure: A lever for economic
growth
Infrastructure
Infrastructure investment is a key priority to support growth and socio-economic

transformation
Integrated Management Approach for infrastructure delivery
• Partnerships and governance
Emphasis on maintenance - Minimal sustainability
Optimising human resource capacity
Majority of infrastructure investment in Roads, Education, Health and Human

Settlements
• The 2017 Provincial Budget provides for total

expenditure amounting to R59.3 billion in
2017/18; R62.1 billion in 2018/19 and R65.3 billion
in 2019/20.
• Over the 2017 MTEF, approximately R28 billion

will be invested in infrastructure within key
sectors such as education, health, social
development, human settlements and public
works.
© Western Cape Government 2012 |

2017 MTEF: Infrastructure Budgets
Social
Development Broadband
R1.9 m 1.7 bn
Environmental 0.1%
Affairs and 6%
Education
Development
R4.8 bn
Planning
17%
R113.1 m
0.4%
Health
R2.5 bn
Human Settlements 9%
R7.2 bn
26%
Public Private
Partnerships
R230.8 m
0.1%
Transport and Public
Works
R11.6 bn
41%
Infrastructure investment of R28 billion over the 2017 MTEF

Majority of infrastructure investment in Roads, Education, Health and Human Settlements
Maintenance and repairs over the MTEF
2,500
2,000
R'000 000
1,500
1,000
500
-
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Audited Audited Audited Rev Est
Financial period
The 2017 Provincial Budget…
Education: R4.8 billion over the 2017 MTEF.
• 16 New schools (637 classrooms);

• 220 classrooms to be added to existing
schools;
• 15 Replacement schools will be
completed beyond the current MTEF.
Health: R2.5 billion over the 2017 MTEF.

• Upgrades and additions to Emergency Centres;
• Prioritised maintenance and upgrades at Groote Schuur and Tygerberg
Hospitals;
• New acute psychiatric unit at Khayelitsha;
• The Eerste River and new Somerset Hospitals;
• Observatory Forensic Pathology Laboratory (replacement of the salt river
Mortuary);
• Avian Park, Napier, Prince Alfred Hamlet and Wolseley clinics;
• Hanover Park and Ravensmead Day centres.
Roads: R9.8 billion over the 2017 MTEF.

• Reseal Melkbos Road;
• implementation of 36 large projects including
Simonsvlei, Paarl-Franschhoek, Oudtshoorn-De-Rust
and Kalbaskraal Road rehabilitation;
• Sixteen Mega projects currently under
construction, including the Worcester (Nekkies)
road; the Piketberg - Velddrif and Roberson –
Bonnievale projects, and
Public Works: R1.8 billion Over the 2017 MTEF.

• Optimising provincially owned office space across
the province through an Office Accommodation
Modernisation programme.
Human Settlements: R 7.2 billion over the 2017 MTEF.
• Three priority areas will be focused on:
1.Directing more resources towards the upgrading

of informal settlements;
2.Accelerating affordable housing; and
3.Prioritising the most deserving people in
allocating free Breaking New Ground Houses.
Human Settlements: R 7.2 billion over the 2017 MTEF.
• The Department’s Catalytic Priority Projects over the 2017 MTEF includes:
1.The City’s Southern Corridor (51000 opportunities);

2.Transhex (8000 opportunities)- Worcester
3.Vlakkeland (2556 Opportunities) - Drakenstein
4.Belhar (3000 opportunities); George (15000
opportunities), and
5.Investment in bulk infrastructure in non-metro
municipalities to the value of R64 million, to speed-up
housing delivery.
CapeNature: R113 million over the 2017 MTEF.

• Improvements at Kogelberg Nature Reserve: Phase 2
– the development of new chalets, a conference
centre and an eco-pool.
• Focus on implementing a more rigorous maintenance
programme and upgrading of existing assets across a
number of provincial Nature Reserves.
Broadband: R1.7 billion over the 2017 MTEF.

• The roll-out of Broadband Infrastructure across
the province.
Nature of investment
• R5.6 billion will be spent on infrastructure maintenance and repairs;

• R3.0 billion on upgrades and additions;
• R6.0 billion on refurbishments and rehabilitation of existing infrastructure assets;
• R3.4 billion will be invested in new infrastructure assets, and
• R7.3 billion spend on infrastructure transfers.
Infrastructure spend per category: 2017 MTEF

3%
15%
36%
29%
17%
Upgrades and Additions Refurbishments and Rehabilitation

New Infrastructure Assets Infrastructure Transfers
Non-infrastructure Expenditure
Spatial distribution of infrastructure spend
Infrastructure expenditure, in particular new infrastructure needs to be informed by sustained

population growth and regional economic growth.
The proportional allocation towards districts are depicted below.
Spatial Distribution of Infrastructure Spend

West Coast
7%
Overberg
6%
Across Districts
30%
Eden
10%
Cape Winelands
City of Cape Town
15%
31%
Central Karoo
1%
Across Districts Cape Winelands Central Karoo City of Cape Town Eden Overberg West Coast
Western Cape - Top 20 infrastructure projects
Cape Winelands – Top 10 projects
Overberg – Top 10 projects
Central Karoo – Top 10 projects
Eden – Top 10 projects
City of Cape Town - Top 10 projects
West Coast - Top 10 projects
Health and Education Infrastructure Delivery focus areas
As noted by both WCED and WCGH, significant progress has been made to establish joined up government in
infrastructure delivery and efforts will continue to entrench the IDMS in these relationships
Strategy to be revised to make portfolio sustainable – innovative delivery through repeat designs and
standardisation, comprehensive facility management
Unlock potential of portfolio itself to move to sustainability – consolidation, release and partnerships for
development
Fiscal constraints require a shift from new capital projects to maintenance of the existing portfolio
Kasselsvlei Primary School 2014 Concordia High School 2016
Brackenfell Secondary School 2014
Khayelitsha Hospital Khayelitsha Shared Services
Mitchell’s Plain Hospital
Human Settlements
The Department of Human Settlements’ investment pursuant to a vision of enabling a

resilient, sustainable, quality, inclusive and transport orientated human settlement
development.
Zwelihle Housing Project, Hermanus 2016 Pelican Park Housing Project, 2014
Transport and Public Works: Branch Roads
Spier Rd
Upgrading
2014
The Western Cape’s roads are used by millions of

commuters every day. Commuters value the
importance of high-quality road infrastructure as a
critical component of an effective transport system
that also makes a substantial contribution to
productivity, safety and economic development in
the Province.
Construction at Annandale Road 2014
Transport and Public Works: Branch Public Works
The Departments of Transport and Public Works: Branch Public Works infrastructure
budget has increased over the period 2009 to 2014, from R159.7 million to R605.8 million.
During this period, Cabinet also approved a Modernisation and Regeneration
programme
In summary
The focus for the 2017 Budget includes balancing public finances and managing
fiscal risks while giving effect to National and Provincial policy imperatives
The 2017 Budget maintains its commitment toward service delivery impact and
delivering a budget for growth
Effective delivery of government programmes is supported by Integrated

Management and Partnering to deliver a budget for growth
Infrastructure-led growth and the spatial distribution of provincial expenditure

remain critical focus areas
Investment in growth and people is critical (Education, Health, economic

infrastructure)
Budget for prosperity, people and growth
Thank you

13 - IvanMeyer

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PROVINCIAL BUDGET: 2017 MTEF

Address to the Western Cape Property Development Forum

6 Slowing economic performance

1 Construction sector was fastest

0.0 2.0 4.0 6.0 8.0

• Evidence Base • Whole-of-society approach

• Public Value • Citizen Centric

Fiscal and Budget Policy Principles:

Theme: Budget for Growth

1.Infrastructure – led growth

2.Growth potential: Towns Regions

PSG 4: Integrated Human Settlements, Spatial and development planning, sustainable

PSG 5: Enhanced Governance, Integrated Management, Inclusive Society and Broadband

Infrastructure investment is a key priority to support growth and socio-economic

Integrated Management Approach for infrastructure delivery

• Partnerships and governance

Emphasis on maintenance - Minimal sustainability

Optimising human resource capacity

Majority of infrastructure investment in Roads, Education, Health and Human

• The 2017 Provincial Budget provides for total

• Over the 2017 MTEF, approximately R28 billion

© Western Cape Government 2012 |

Infrastructure investment of R28 billion over the 2017 MTEF

Education: R4.8 billion over the 2017 MTEF.

• 16 New schools (637 classrooms);

Health: R2.5 billion over the 2017 MTEF.

Roads: R9.8 billion over the 2017 MTEF.

Public Works: R1.8 billion Over the 2017 MTEF.

Human Settlements: R 7.2 billion over the 2017 MTEF.

• Three priority areas will be focused on:

1.Directing more resources towards the upgrading

Human Settlements: R 7.2 billion over the 2017 MTEF.

1.The City’s Southern Corridor (51000 opportunities);

CapeNature: R113 million over the 2017 MTEF.

Broadband: R1.7 billion over the 2017 MTEF.

• R5.6 billion will be spent on infrastructure maintenance and repairs;

Infrastructure spend per category: 2017 MTEF

Upgrades and Additions Refurbishments and Rehabilitation

Infrastructure expenditure, in particular new infrastructure needs to be informed by sustained

The proportional allocation towards districts are depicted below.

Spatial Distribution of Infrastructure Spend

Brackenfell Secondary School 2014

Mitchell’s Plain Hospital

The Department of Human Settlements’ investment pursuant to a vision of enabling a

The Western Cape’s roads are used by millions of

Construction at Annandale Road 2014

Effective delivery of government programmes is supported by Integrated

Infrastructure-led growth and the spatial distribution of provincial expenditure

Investment in growth and people is critical (Education, Health, economic

Budget for prosperity, people and growth

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