Finance
Question by Hon Minnen.
With regard to the insufficient funding for the 2024/25 wage adjustment:
- (a) What was the total amount received by the Province from the national government specifically designated for cost-of-living wage adjustments in the province’s public sector, (b) what is the detailed breakdown of how these wage adjustment funds were spent in each departments, (c) what specific expenditure items or categories were covered by these funds (for example salaries, bonuses and back pay) and (d) how many employees in each department benefited from these wage adjustments;
- whether there were any disparities in the distribution or implementation of the adjustments; if so, what are the relevant details;
- (a) how much of the allocated amount was left unspent by each department and (b) what were the specific reasons for not fully utilising the allocated funds in each case;
- in the light of the recent statement by the Minister of Finance who criticised Provinces for failing to ensure that allocated funds for the wage bill reached their intended targets, (a) what is her and her Department’s response to this claim, particularly in relation to the planned reduction of teaching posts, and (b) what steps are being taken by her Department to ensure that funds are effectively reaching frontline services, including Education?
(1) (a) National Treasury allocated R3.499 billion for the cost-of-living adjustment as it
relates to the 2023 wage agreement in 2024/25 financial year.
(b) The R3.499 billion was allocated as follows:
• The Department of Education received R2.061 billion and fully allocated it
towards Compensation of Employees in respect of the cost-of-living
adjustments.
• The Department of Health and Wellness received R1.388 billion, of which,
R1.370 billion (99.3 per cent) was allocated towards Compensation of
Employees for the cost-of-living adjustment with the balance of R18 million
allocated towards anticipated service delivery pressures.
• The Department of Social Development received R50 million which was fully
allocated towards Compensation of Employees in respect of the cost-of-living
adjustment.
(c) As for Education and Social Development, the full allocation was made towards
salaries under Compensation of Employees.
For Health and Wellness, R1.370 billion was allocated towards Compensation of
Employees and R18 million has been allocated across various items towards anticipated
service delivery pressures.
(d) All eligible employees in employ at the time of implementing the 2023 wage
agreement would have benefited from these allocations.
(2) There were none in as far as can be determined.
(3) (a) The unspent amount cannot be determined at this stage of the financial year as
spending is ongoing up until 31 March 2024 i.e., the end of the 2024/25 financial year.
(b) As noted in (a) above, this can only be determined at the end of the 2024/25 financial
year.
(4) (a) All funds received were allocated to the relevant Departments as indicated
above and communicated to National Treasury.
(b) In line with the Western Cape Government’s budget principles, prioritising and
safeguarding frontline services will remain a key focus area.
