Hon Deputy Speaker, hon members, hon Ministers and Deputy Ministers present here, as we debate the 2011 Medium-Term Budget Policy Statement, we do so, once again, against the backdrop of the continued weaknesses in the global economy as reflected in the slow recovery of the United States' economy and the European debt crisis, whilst at the same time observing the emerging economies of China, Brazil and India that continue to grow, but with reported risk in inflationary pressures.
As we now know, hon members, the Medium-Term Budget Policy Statement provides the basis upon which the 2012-13 financial year and the Medium- Term Expenditure Framework for the outer fiscal years will be funded. The fiscal policy, hon members, provides us with guidelines for governments' decisions on revenue, spending and borrowing. As we speak right now, South Africa's fiscal policy has enabled government to deliver on its developmental mandate by providing resources in a manner that is sustainable and that re-enforces the stability of our economy.
Madam Deputy Speaker, as we all know, budget is a function of economic growth that underpins sustainable developmental goals of governments. Therefore, the Medium-Term Budget Policy Statement has based its proposals on the assumption of how the economy might perform globally and locally. As much as that should be our starting point; it should be premised on the understanding that the world in which we live is inherently imperfect, and that we are part of the same world that we are seeking to change and understand.
The 2011 Medium-Term Budget Policy Statement implores us to imagine new economic solutions for a better future. It also obliges us all to realise the importance of sustainable economic growth over a longer period, most importantly, for job creation and decent jobs to be created for our people. The Medium-Term Budget Policy Statement also reflects on the competitiveness and productivity of our economy, particularly in the private sector, which are a necessity to grow our economy by 6% to 7% in order to address structural and unemployment challenges.
Hon Deputy Speaker, it is a great pleasure that we can say today, without fear of contradicting ourselves, that in the past 17 years of our democracy we have succeeded in perfecting our tools of analysis and, therefore, the Medium-Term Budget Policy Statement has become a very reliable source of information upon which policy-makers, business and government departments can plan and develop their developmental strategic plans.
The persistent financial crisis has exposed us as a country and as the people, and our knowledge on how capital conducts itself in its quest for maximising profit. It has also exposed the fact that financial matters do not turn towards the equilibrium and self-correction in the interest of poor nations. The myth upon which all of us sometimes believe - that both capital and financial markets can voluntarily tilt towards the equalisation of incomes between developed and poor nations should - therefore be debugged.
In addressing these challenges, Parliament should support the Medium-Term Policy Statement, particularly where Treasury is seeking to move towards shifting spending patterns on higher household consumptions, and make sure that government continues to prioritise capital expenditure as opposed to wage increases.
We also observed, as a committee, that the Medium-Term Budget Policy Statement also seeks to encourage industrial development through the stimulus packages as alluded to. [Time expired.]
In conclusion, hon Deputy Speaker, the committee has also implored National Treasury to elaborate on counter fiscal policy stands and debt management as elaborated. We therefore, as a committee, recommend that the Report be adopted by this House, and the Medium-Term Budget Policy Statement be supported by this august House. Thank you. [Applause.]
There was no debate.
Hon Deputy Speaker, I move:
That the report be adopted.
The motion is that the report be adopted. Are there any objections?
Madam Deputy Speaker, would you be specific about which report we are adopting, because items four and five were taken together.
No, it was item four that I asked the secretary to read.
We support item four, but the chairman spoke to both the reports, that's why I made the query. Thank you.
We are dealing with item four, hon members.
Motion agreed to.
Report accordingly adopted.