Hon Chairperson, Deputy President, Minister of Finance, Deputy Minister of Finance, hon members, guests, director-general and the team, the central objective of this debate is to politically engage with and articulate the strategic socioeconomic and policy issues that arise from the Medium-Term Budget Policy Statement, the MTBPS. It is not a budget but rather a financial operation policy plan to give effect to existing policies. It is an indicator of how fiscal revenue and expenditure over the next year will evolve. Our debate must analyse what the MTBPS must respond to - public spending and what informs public spending priorities.
The Medium-Term Expenditure Framework is instructive on how revenue shall be divided between the spheres of government, with an emphasis on strengthening capacity and efficiency, particularly in implementing reforms in provincial and municipal infrastructure planning and delivery. The overall test for economic policy and public spending remains the commitment to fighting poverty, reducing unemployment, and bringing about a more equitable society.
The MTBPS provides a number of indicators for change to the Medium-Term Expenditure Framework and these changes are guided by the Medium-Term Strategic Framework itself. These policy directives are naturally informed by the ANC's medium-term strategic framework priorities within the MTBPS. These priorities are inclusive economic growth and transformation of the economy to create decent work and sustainable livelihoods; a massive programme of economic and social infrastructure that will ensure an efficient and responsive economic infrastructure network; a comprehensive rural development strategy that will ensure equitable and sustainable rural communities and food security for all; improving the equality and quality of basic education; a skilled and capable workforce to support inclusive growth; improving health and life expectancy; intensifying the fight against crime and corruption, protection, safety and security; a responsible, accountable, effective and efficient local government system; pursuing the advancement of the African agenda and international co- operation for a better South Africa, a better and safer Africa and the world at large; and, building a developmental state, a developmental- oriented public service for improved public services and inclusive citizenship.
The MTBPS is part of an integrated strategy designed to address poverty, inequality and unemployment and to ensure a better life for all. Within this context, the MTBPS speaks to the New Growth Path, the National Development Plan and the Industrial Policy Action Plan. The Minister of Finance, in both the Budget speech and in the delivery of the MTBPS, drew a relationship between these respective policy instruments.
The National Development Plan critically examines the vexed question of the underlying cause of the main and contradictory challenges facing the nation. Its approach is typically and correctly a research methodological approach, scientifically extrapolating the base of the contradictions and not the superstructure. The National Development Plan emphasises cause and effect in its approach and that such an overview would, of necessity, have multiple dimensions. It deals with the essence of the contradiction and not the form. The plan's approach, therefore, becomes a dialectical approach. Although domestic structural constraints and imbalances are the main obstacles to faster growth, the implementation of the National Development Plan will begin to address these challenges.
The approach of the 2012 MTBPS is no different. It confronts the challenges to development in what the United Nations Development Programme describes as a highly unequal society. The fiscal framework that it puts forward seeks to concretely address the promotion of growth and development. It responds to the National Development Plan's critical challenges by ensuring fiscal and revenue proposals, thus strengthening financial arrangement planning and co-operation between the spheres of government.
The relationship of the MTBPS with the industrialisation strategy is demonstrated in the provisions that allow for the state to increase its role in facilitating growth in sectors that are able to create employment on a large scale. The financial support for the advanced sectors of our industries is vital to sustain long-term growth.
The New Growth Path identifies key areas in which jobs can be created, and the MTBPS provides this framework of support. The key structural challenges in the economy that the New Growth Path identifies are taken up in the MTBPS and, like the New Growth Path, the MTBPS cautions that this will only be achieved if social partners and government work together. It is evident that government will definitely not be able to address the challenges on its own. Therefore, the aim of the New Growth Path ensures that that becomes a possibility.
In conclusion, there is no denying the fact that far more rapid growth is needed to draw large numbers of unemployed South Africans, youth in particular, into economic activity. The NDP outlines an approach to eliminate poverty and reduce inequality by raising levels of unemployment, productivity and earnings.
Government needs to step up its efforts in combating waste, inefficiency and corruption. We need reforms that will focus on procurement systems that prioritise value for money and strengthen the anticorruption systems as a whole.
With regard to intergenerational debt, hon Minister, it is important for us to move towards investment. However, we need to ensure that the intergenerational debt that the new generation is going to incur in the longer term becomes beneficial in its current form, so that they see the benefits as and when they happen. That is quite important.
I would like to thank the Whip, Van Rooyen, and the chairperson of the committee, the hon Mufamadi, for providing leadership and ensuring that there is stability within the committee itself around the debates. Let me also thank the Minister and the Deputy Minister of Finance for this Medium- Term Budget Policy Statement in terms of issues around policy and the direction that we take. It is indeed not an easy task for them to ensure that there is stability, be it in the market or in reforms. It is a daunting task.
It is good and well, hon Koornhof, that you made the observation around what the Minister inherited from the apartheid system as far as issues of financing are concerned. It is not an easy task, and I would like to thank you for making that observation. However, hon Harris, it is not easy to live under the shadow of a human being. It is even worse becoming a shadow yourself. So, I can imagine what you go through every time you have to shadow someone. I would like you to make the time - find the time - to get educated about financial and public management. The hon Koornhof and the hon Ross make tangible efforts as far as the committee is concerned, instead of coming here and, as usual, grandstanding and not paying attention to the issues we are dealing with. You are quite correct in that Mangaung is going to drive the policy of this country. It has always done that and is going to continue to do that. Thank you so much. [Time expired.] [Applause.]