The Western Cape government is for the first time exploring borrowing money to fund investment in infrastructure, as the country faces a funding crunch brought about by the economic shock of Covid-19, rising debt and years of subdued economic growth.
"Provinces have to start to think about a different fiscal future," says Western Cape Finance MEC, David Maynier. "We do need to start to review how we've done things in the past."
About R20.2 billion is set to be cut from the Western Cape's budget over the next three years. These cuts stem from the state's plan to narrow SA's growing budget deficit by cutting about R300 billion in spending over the next three years.