Hon Chairperson, Minister of Finance, special delegates, delegates of the NCOP, ladies and gentlemen, never before has the fiscal revenue framework debate been put in the spotlight and illuminated by debate more than now. This is important because it locates our work within public participation and influences and empowers the funding of provinces from the equitable share.
We have contended that revenue should benefit the various spheres of government, that is provinces and municipalities. It is crucial that money is used effectively and for the purposes it is intended for. There is a need to ensure that there are strategic plans which speak to the ANC election manifesto and policy statements to give effect to the ideals our people have fought for. We want our people to be empowered through the public participation process to give effect to the notion of a people's budget.
We have noted the challenge of effectively spending conditional grants. There are some departments that are still struggling to spend their conditional grants. There is a need to constantly monitor the spending of these grants. Departments should not wait until it is late before spending the grants as this usually results in fiscal dumping. Grants allocated for libraries, sports, land care, HIV/Aids and others should be spent to ensure that communities benefit from these targeted initiatives.
There is a need to ensure that the necessary capacities are built within departments, especially finance directorates and supply chain management, to ensure the effective expenditure of the conditional grants.
It is important that whenever allocation of revenue is done for each province, some of the factors alluded to below should be taken into consideration. In the case of Limpopo, the province is facing a challenge with regard to immigration, especially illegal immigrants entering the province from neighbouring states, given its geographical location. A feature of Limpopo is that the province shares borders with three countries, namely Botswana, Zimbabwe and Mozambique. As a result it is seen as the best place through which people can access South Africa. Before moving to any part of the country, they stay in Limpopo. During the permanent or temporary stay of our brothers and sisters from elsewhere in Africa, the province needs extra resources from the equitable share to cater for these unforeseen needs, which are not planned for. We have contended that the province's population, as reflected by the official census, may not be a true reflection of the reality on the ground. We are saying this because Limpopo is the first point of entry for people coming from the various neighbouring states, who are entering South Africa from time to time for better opportunities. Given the above, the budget allocated is therefore overstretched by undocumented citizens.
It is therefore crucial that whenever budget plans are made, these challenges and factors should be borne in mind, rather than only using the official statistics of the population. We should cater for the unforeseen challenges posed by unaccounted-for residents. As a result of migration, illegal immigrants that move into the Limpopo province place a strain on our health system and other facilities which are struggling to sustain our population. Indeed, Limpopo may share some of the challenges facing provinces like Gauteng, given the challenges of migrant labour, but because of its rural vastness, sharing borders with other provinces and being the entry point from the north, Limpopo has unique features and is a unique province.
There is a need to increase the revenue baseline for Limpopo, given the socioeconomic conditions that characterise the province. It is important to take the following into consideration when allocating the budget for the province in 2011. To flag the point made earlier regarding the vastness of the province, there are five districts in Limpopo that need to be covered when the issue of service delivery is taken into account. This has a budgetary impact when outreach initiatives are involved. The rural nature of the province also poses challenges with regard to the delivery of services. There is still a need for critical infrastructure that is important for the delivery of certain types of services. The level of poverty is one of the highest in South Africa and more budget will be required to address this.
On a positive note, the province remains a gateway to Africa. It has the potential for development initiatives that will put the rest of the country in a better position. More budget is needed to stimulate growth and development, but Limpopo has the potential for growth. Lots of opportunities are still to be unlocked in areas such as Lephalale, Sekhukhune and elsewhere in the province.
As I conclude, the issue of monitoring cannot be overemphasised. It is important to monitor the spending patterns of departments and other entities to which money has been allocated, hence the role of the various portfolio committees in oversight cannot be overemphasised. If expenditure is monitored by committees throughout the year, this will ensure that public money is well spent and we will have value for money budgeted for.
We hope that these recommendations for this financial year will go a long way towards addressing these challenges. With the above in mind, the Limpopo province supports the 2011 fiscal framework and revenue proposals. You are indeed a revolutionary, Mr Minister. I thank you. [Applause.]