Hon members, Deputy Speaker, the EFF is turning one year tomorrow, 26 July. [Applause.] We call upon those members of this House who referred to the EFF as a Nazi fascist party, led by a Hitler, to maybe take time to read a book called The Coming Revolution. It will help them to have a real understanding of what "EFF" stands for.
Today in this House, the EFF rise to reject the Appropriation Bill. We do so because the contents of this book that contains the hope and aspirations of our people are not served well by any of the expenditure estimates of the 38 Votes financed from the national Appropriation Bill tabled before this House. The amount in excess of R1,2 trillion to be appropriated is, amongst others, financed by state borrowing in excess of R1,8 trillion.
Though the EFF would support increased state borrowing to finance public expenditure, it is problematic when one of the basic principles of the fiscal policy, which is that of intergenerational fairness, is being overlooked. The principle contends that borrowing should not be used to finance goods and services from which future generations will not accrue benefits, but be burdened with obligations to pay back the debt used in futility by a preceding generation.
We say that increased borrowing to finance the state expenditure is not necessarily problematic, but in the case of the ANC administration it is problematic, because future generations are going to be burdened with paying debts that have been used to finance goods and services from which future generations are not going to accrue benefits. Such goods and services, like the Nkandla residence - that asset of R230 million - will have to be financed from state debt which will need to be paid by a future generation that will not accrue a single benefit from that asset.
Borrowings are used to finance frivolities, providing the executive with perks to the tune of two high-end vehicles and houses in Pretoria and Cape Town, figures exceeding billions, considering the cost of keeping Parliament in Cape Town.
Borrowings are used to buy stolen land, and the costs of these transactions run into billions - one transaction stood at a figure that the President could not even pronounce correctly - instead of expropriating that land without compensation.
Borrowings are used to subsidise white monopoly capital to sustain their mega-profits and dividends in the form of youth employment tax incentives.
There are no reciprocal benefits and offsets from the borrowings. Instead, we see scandal upon scandal in the arrests of public representatives who are alleged to have helped themselves, having seen an opportunity in the passing away of President Mandela.
The SA Revenue Service is undercollecting revenue. Collusion of big white monopoly cartels continues to erode the tax base unabated. In addition, they are protected by statutes denying expropriation of land without compensation, and there is the refusal to nationalise mines, banks and other strategic economic sectors which would increase state revenue in order to finance the socioeconomic pillars of national economic development. [Interjections.]
For more than two decades, both the fiscal and monetary policies of the state in which this Appropriation Bill is anchored, have failed to massively industrialise the country's economy through beneficiation of mineral resources in order to address the triple challenge of inequality, unemployment and poverty.
The allocation of public resources, guided by the structural adjustment of neoliberal policies of white monopoly capital, known as the National Development Plan, NDP, has failed to lay down a sustainable economic development framework and does not provide for focus on the urgent improvement of quality government services.
Without the bold decision of nationalization, massive industrialisation and the expropriation of land without compensation, the economy cannot grow rapidly. The platform for faster growth in the much-praised NDP will not enable the economy to redress the stagnation, if not regression, experienced over the past 20 years. Accordingly, the EFF rejects the Appropriation Bill in its entirety. I thank you.
Funda elakho igama. [Read out your name.]