The Medium Term Budget Policy Statement tabled in the Legislature today reveals a provincial fiscus under severe strain. Treasury’s own figures show that total transfers to the Eastern Cape amount to R99.6 billion, while adjusted payments will reach R101.9 billion. This creates a financing gap of more than R2 billion that could only be closed through roll-overs, cash flow adjustments, and a drawdown of provincial reserves.
When a province must rely on one-off interventions to plug holes in its budget, it is the public who feel the consequences. Pressure on cash flow affects the ability of departments to pay suppliers on time, maintain clinics and schools, and keep essential programmes running. Families already living with poor service delivery experience further instability when budgets do not keep pace with the demands placed on them.
The Democratic Alliance notes that Treasury has adjusted provincial own revenue to R1.8 billion. This revision comes at a time when the latest annual reports show that several departments and public entities failed to reach their revenue targets in the previous financial year. These outcomes confirm a pattern of structural undercollection that cannot be ignored.
Actual performance across departments makes the picture clear. Health and Transport both reported significant shortfalls against their own revenue targets, while entities such as the Eastern Cape Liquor Board, the Parks and Tourism Agency, and other trading entities also underperformed. These repeated revenue deficits weaken provincial receipts and highlight the growing gap between what is projected and what is realistically achievable.
Treasury confirms in the MTBPS that provincial payments grew to R100 billion in the main budget and increased by a further R1.9 billion through the adjustment process. Despite this, transfers from national government did not keep pace, leaving the province with a significant gap between what it receives and what it plans to spend. This imbalance has serious implications for the sustainability of departmental budgets, especially when combined with persistent weaknesses in revenue collection.
The Democratic Alliance believes Treasury must now take more decisive steps to stabilise the fiscal position of the province. There must be a transparent assessment of departmental spending pressures, a realistic review of own revenue expectations, and stronger oversight to prevent further risks to service delivery. Without this, the province will continue to depend on temporary fixes rather than long-term financial discipline.
The heart of this issue remains the impact on the people of the Eastern Cape. When funds are stretched beyond limits, it is clinics that cannot absorb staff, schools that cannot complete maintenance, and households that wait longer for services they depend on. A stable provincial budget is not merely an accounting requirement. It is the foundation of dignity, safety, and opportunity for every resident.