Chairperson, hon Deputy Chairperson, hon Deputy Minister, hon members, on 27 October 2009 the Minister of finance hon Pravin Gordhan, tabled a Medium-Term Budget Policy Statement, outlining the budget priorities of government for the medium term. The MTBPS was tabled together with the Appropriation Bill. These were later referred to the Select Committee on Appropriations for consideration in terms of its mandate. Among its responsibilities in terms of the MTBPS, the committee is required to consider and report on the following: the spending priorities of national government for the next three years; the proposed division of revenue between spheres of government and between arms of government for the next three years; and the proposed substantial adjustments to conditional grants to provinces and local government, if any.
In his foreword to the MTBPS, the Minister of Finance pointed out that as a country our constitutional vision enjoins us to, and I quote:
... improve the quality of life of all citizens and free the potential of each person as we build a nation based on economic values, social justice and human rights.
This is in line with the ANC's understanding that the most pressing challenges that confront our people today are unemployment, poverty and inequality. It reiterates the party's determination to halve unemployment and poverty by 2014 and to substantially reduce social and economic inequalities. The Minister made sound and realistic assurances and calmed the waters by presenting one of the most balanced policy statements during very difficult times.
The fiscal framework makes available an additional R78 billion for spending. Additional savings of about R14,5 billion at national level and R2,6 billion at provincial level are expected to contribute to financing new priorities. The revised total expenditure estimate for 2009-10 is R781, 4 billion, growing to R834,9 billion the following year and reaching R954 billion in 2012- 13.
It increases baseline allocations for departments, provinces and local government, with departments considered strategic to policy implementation getting a fair share of the cake.
Although this results in deficits for the coming three years, thus putting our country into debt, it is encouraging that most economists agree that, as much as the amount is large by South African standards, it is not particularly large within the current crisis response paradigm.
Even the economists from Idasa support this view by saying that:
South Africa's response remains consistent with that of the G20 countries and envisaged levels of indebtedness are not in excess of that of the majority of these countries.
So the DA should not worry; we are on course.
Chairperson, I stand here to report, without any fear of contradiction, that the budget priorities over the medium term support policy priorities, that is, social spending, infrastructure expansion, the fight against crime, education, health and job creation. This shows that our government is committed to continued spending even if growth is expected to recover slowly and tax revenue even more slowly. It indeed does not have a choice given the poverty, the inequality and the unemployment that continue to mar our democracy.
Both the Adjustments Appropriation Bill and the MTBPS give hope to our people that many promises made by the ANC during the election campaign will be achieved. They firmly and convincingly lead us on a path towards the achievement of commitments made by the President during his May 09 inauguration speech, when he had this to say to the nation and the world, and I quote:
For as long as there are South Africans who die from preventable diseases; for as long as there are workers who struggle to feed their families; for as long as there are communities without clean water, decent shelter or proper sanitation; for as long as there are rural dwellers unable to make a decent living from the land on which they live; for as long as there are children who do not have the means or the opportunity to receive a decent education, we shall not rest, and we dare not falter, in our drive to eradicate poverty.
This policy directive does exactly what the President further said during the state of the nation address, and I quote:
The economic downturn will affect the pace at which our country is able to address the social and economic challenges it faces. But it will not alter the direction of our development.
Since the implementation of our programme will take place in the face of the economic downturn, we will have to act prudently - no wastage, no rollovers of funds - every cent must be spent wisely and fruitfully. We must cut our cloth according to our size.
We should commend the Ministry for being a good example in this regard.
Chairperson, allow me to conclude by saying that the 2009 MTBPS strikes a positive balance of priorities in the wake of the recession. It made a strong policy position to evaluate spending in terms of impact assessment and efficiency in order to ensure value for money and reprioritisation towards higher-impact priorities.
The statement also covers significant areas identified in the Medium-Term Strategic Framework, MTSF. There are, however, some weaknesses within the statement, as identified in the committee report, that require some consideration. It is encouraging to hear from the Deputy Minister here today that they found such committee recommendations useful and are busy considering them.
Hon members, the stage is now set for us as Parliament to play our oversight role, to ensure that departmental budgets are in line with the set priorities, to hold everyone accountable and ensure that where there is deviation, noncompliance, waste of funds, etc, necessary corrective measures are put in place by the executive.
In conclusion, let me remind our opposition partners that as the ANC, we always make sure that we don't forget the people who mandated us to come to this Parliament. As parties in Parliament, the fact that we are representing different people tells a story that our views, approaches and strategies will not always be the same. It is most fortunate that we have chosen this path as the ANC and we believe that we are on track.
Chairperson, on that note I recommend the adoption of the MTBPS. Thank you. [Applause.]