Hon Kwankwa, we appreciate your support and that of all those members who are supporting the Division of Revenue Bill. I do want to draw your attention to something though, because you mentioned a number of areas in the Eastern Cape that have not received service delivery. I want to draw your attention to the R7 billion, for instance, for emerging farmers; to the R80 billion targeted for water and sanitation and local roads projects; and to the R105 billion allocated to housing and associated infrastructure projects. We would do well to watch, together with yourselves, whether those areas that you mentioned are going to benefit from these allocations. These are just a few examples.
The Standing Committee on Appropriations presents the 2015-16 Division of Revenue Bill in conditions of a weak global and domestic economic outlook. The International Monetary Fund World Economic Outlook, for instance, estimates that the economic growth in the eurozone, which is still South Africa's largest trading partner, will be 1,2% in 2015. The United States' growth is estimated at 3,6% for the same financial year. This suggests that the demand for South Africa's export goods to the eurozone remains low and therefore corporate income tax and foreign currency earnings coming into the country have declined.
National Treasury forecasts our economic growth at 2% and this means that we must double our efforts. Indeed, it will happen. We will even achieve 5% by 2019. This means that we must double our efforts to grow our economy, create more decent work and increase our tax revenue base.
Notwithstanding the reduction in spending by R10 billion in the 2015-16 financial year and R15 billion in the 2016-17 financial year, government spending increases by 2,1% in real terms over the Medium-Term Expenditure Framework period.
The ANC-led government is determined to sustain spending on the priorities as pronounced in the ANC election manifesto in 2014. These are the creation of more jobs, decent work and sustainable livelihoods; rural development, land reform and food security; education and training; health; human settlements and basic services; and fighting corruption and crime.
This year, 2015, being the year of the Freedom Charter, the ANC recommits itself to the implementation of the Freedom Charter to pursue the goals of creating a national democratic society and delivering to our people a better life for all.
The equitable division of revenue across the national, provincial and local spheres of government emphasises the need for efficient spending of public funds and value for money, especially in building the social and economic infrastructure. Therefore, there must be efficiency in building housing, water and sanitation, electricity, schools and health care infrastructure, as well as infrastructure in the construction of roads, rail, ports, and information and communications technology. This proposed division of revenue also allocates funds for the maintenance of all infrastructure. The ANC is keen to see efficiency in public spending. Our people expect efficiency and value for money in the services we deliver to them.
During the state of the nation address His Excellency, President Zuma, announced the nine-point plan to boost economic growth as part of the process of radically transforming the economy in a manner that changes the patterns of ownership of the means of production for the attainment of inclusive growth. I shall not reiterate the nine-point plan. The chairperson, Comrade Paul Mashatile, has already referred to the plan specifically.
The Division of Revenue Bill proposes the funding of the nine-point plan over the MTEF period in order to develop and grow the economy in pursuit of creating decent work, eradicating poverty and inequality, and achieving 5% gross domestic product growth by 2019.
Ukhongolose uyakubalula ukuthi lesi sabelomali sandisa imali eya kohulumeni basekhaya ukuze kwakhiwe ingqalasizinda entsha, futhi kugcinwe leyo eseyakhiwe isesimeni esihle sokusebenza. Ngakho-ke, sinxusa abantu bakithi ukuthi le ngqalasisinda eyakhiwe nesazokwakhiwa bayiphathise okwezikhali zamantungwa, bayivikele.
Okubalulekile futhi ngalesi sabelomali esiphambi kwale Ndlu ehloniphekile ukuthi imali yesibonelelo sogogo nomkhulu, izingane kanye nabanye abantu abakhubazekile yenyukile. Ngokunjalo nemali yokudla ezikoleni igcinwe enanini eliphezulu kakhulu.
Konke lokhu kwenziwa nguhulumeni ngoba uKhongolose uyakukhathalela ukuthi izimpilo zabantu abadala, izingane, abantu abakhubazekile kanye nabafundi zingabi bucayi kodwa zithuthuke ngaso sonke isikhathi. (Translation of isiZulu paragraphs follows.)
[The ANC would like to mention that this budget allows for an increase in funds that will go to local governments for the building of new infrastructure, and maintaining existing infrastructure in good condition. Therefore, we urge our people to take extra care of the existing infrastructure and the infrastructure that is still going to be built, and also to protect it.
Another important thing about the budget that's before this august House is that the government grants for the elderly, for children, and for people living with disabilities have increased. The same goes for the money for feeding schemes at schools; it has been kept at a very high amount. All this is being done by the government because the ANC is concerned about the lives of the elderly, children and people living with disabilities, and that learners are not being put in danger and also for it to improve at all times.]
Through the 2015-16 division of revenue the ANC-led government is reaffirming its commitment to implementing the National Development Plan in pursuit of a nonracial, nonsexist, prosperous and democratic society.
The ANC supports the Division of Revenue Bill and recommends that this Parliament passes it. I thank you. [Applause.]