March 31, 2011
From 2006 onwards, the DA tuned round the proportion of Cape Town’s capital budget spent, from around just 60% under the previous administration to as high as 96% in 2009. In practical terms: The DA administration used more of the money budgeted for Cape Town to deliver more services, for more people.
The Evidence:
City of Cape Town: Capital Expenditure 2002-2010
- 2002/03: Budget: R1.97 billion (Proportion of Budget Spent: 67.8%)
- 2003/04: R1.36 billion (66.5%)
- 2004/05: R1.51 billion (63.2%)
- 2005/06: R2.13 billion (71.4%)
- 2006/07: R2.55 billion (77.4%)
- 2007/08: R4.00 billion (78.0%)
- 2008/09: R4.00 billion (96.5%)
- 2009/10: R6.20 billion (83.0%)
The figures outlined above tell a remarkable story. They demonstrate that, under the previous administration, the proportion of Cape Town’s capital budget actually being spent was declining, from 67.8% in 2003 to 63.3% in 2005. Not only that, but because the actual amount allocated in the budget to Cape Town also declined over that period (R1.9 billion to R1.5 billion) it meant much less was being spent in real terms – because not only was there less money, but less of it was being used. Less money spent means less services. When the DA came to power in 2006, Cape Town’s budget increased dramatically (from R2 billion in 2006 to R6.2 billion in 2010). The DA cannot take credit for that, the money is allocated by the National Treasury and largely had to do with the World Cup. But it did manage to spend a far greater proportion of it – never less than 70% and as much as 96% in 2009. One thing is for sure, from the evidence it is quite clear the DA reversed a damaging trend, made government more efficient, dramatically increased the proportion of Cape Town’s budget spent and, in turn, was able to deliver more services, to more people.
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