Thank you very much, Chairperson, and once again thanks to hon members who engaged on this Appropriation Bill. Our Budget this year supports the implementation of the National Development Plan, contrary to what some members have said. Government is ensuring that the priority programmes identified in the manifesto of the ANC, which are now being translated into medium-term strategy plans, are funded.
Nevertheless, economic weakness and the rising burden of public debt reinforced the importance of ensuring the sustainability of fiscal policy over the period ahead. Rising global interest rates have increased the cost of servicing our debt; commodity prices have declined and the depreciation of our currency has pushed up inflation.
The fiscal space that we have built up in the early 2000s and into the late 2000s has indeed diminished. The period ahead will therefore not be easy. To ensure that the fiscus remains sustainable, we remain committed to the three principles that are the backbone of our fiscal stance - counter cyclicality, debt sustainability and intergenerational fairness and equity.
If I were to refer to some of the comments that were made with regard to intergenerational fairness, let me refer the hon member from the EFF to what I said in the Budget Vote debate, namely that these five years, colleagues and comrades, are going to be an interesting learning period for you. On page 36 - I understand that you may not have had the time to read our documents. On page 36 of the Budget Review, we showed the consolidated operating and capital accounts of our government.
The 2014-15 revenue exceeds current spending in compensation, goods, services and interests. Therefore, it is not true that this doesn't talk to intergenerational equity. This implies that our borrowing of R153,1 billion for 2014-15 is for capital spending, consistent with the principle of intergenerational equity.
This Budget increases debt in order to finance the continuation and the construction of schools, clinics, roads and municipal infrastructure that will benefit our children and grandchildren, and not burden them with debt. The budget also introduces the means to further reduce consumption spending and increases the current surplus.
The DA refers to this period as the period of broken promises and all sorts of other things. It just shows that the difference between us and some members on the left is that others have the luxury to scream from the sidelines, like at a soccer match, whilst we have the responsibility of implementing our policy, as we hereby do. [Interjections.]
After twenty years, the ANC government can indeed only report prosperity and bringing a better life to many in this country. You know, reading the statistics that we provide in the interest of transparency and accountability, made the member of the DA the wisest in the room ... [Interjections.] ... thanks to us, for having provided you with that information. That is why we are ranked amongst the best in the world when it come to transparency. [Applause.]
I thank the member of the IFP, hon Nkomo, for raising issues with regard to a lack of planning by departments, resulting in underspending. We trust that oversight by this House, particularly this committee, will assist us in making sure that we are able to do that.
Over the next three years, government will stabilise the growth of public debt and then begin to rebuild fiscal space. This will be achieved by remaining within the expenditure limits that we have set in the Medium-Term Expenditure Framework. Expenditure will continue to grow and the real value of our social spending will be maintained, but the fiscal limits will be far stronger.
The need to ensure value for money and effective allocation of resources is now even more paramount. Our challenge is to transform the ample resources made available in this Appropriation into real change in the lives of ordinary South Africans. So let us all, government, the private sector, labour and public society at large, roll up our sleeves in a partnership for change and build the country of our dreams.
The role of the office of the Accountant-General, as hon Madlopha had indicated, is actually very critical. We have also strengthened the role of this office through the establishment of the Office of the Chief Procurement Officer in order to ensure that our Procurement and Supply Chain Management is managed appropriately. The support from municipalities and building capacity, both in financial management and in service delivery, in partnership with Cogta, is also going to be strengthened and intensified.
We take note of a number of commitments that hon members made, including hon Kwankwa, who spoke about the optimistic forecast. We say to him that we are continuing to improve on this front, but as we know, forecasts are actually based on assumptions. Should those assumptions not be realised, forecasts are likely to be missed, overperformed or underperformed.
To the members of parties who actually decided to go against the tide, I just want to sound the warning that you should not find yourself in a situation in which one lady found herself, making a call to her husband, that there is a lunatic driving in the wrong direction on the highway and, she said, he is not the only one, all of them are driving in the wrong direction; I am the only one driving in the right direction. [Laughter.] Little did she know that she was the only one driving in the wrong direction. I therefore implore the members of this House to adopt the Appropriation Bill with the amendment as tabled for technical corrections. Thank you very much. [Applause.]
Debate concluded.