Chairperson and hon members of this House, on the occasion of the tabling of the Budget last week, I was intimidated by the Minister of Finance when he mentioned the aggregated budget over the coming Medium-Term Expenditure Framework period. I am still struggling to explain to my constituency in the small town of Kranskop how much two trillion is, let alone translate it into isiZulu. [Interjections.] No, there are no noughts in isiZulu.
Uzongisiza baba uSkosana siyibhale phansi. [Hon Skosana will help me write it down.]
The Division of Revenue Bill is a constitutional requirement that presents us with the opportunity to, at least, address ourselves to the coming financial year's Budget, as it is vertically allocated to the three spheres of government. This Bill is a culmination of a lengthy process of consultation amongst these spheres of government co-ordinated by the Ministry of Finance. I refer here to the Budget Council, the Budget Forum meetings of the national departments and other forums that the Minister has alluded to that include all stakeholders in the Budget process.
This process gives effect to one of the key pillars of the Reconstruction and Development Programme - that of democratising society and the state. The RDP is at the centre of the ANC-led government's agenda to fight poverty and bring about sustainable development. Both the January 8 Statement and the state of the nation address enjoin all three state organs and society to benchmark all our programmes against the RDP, as is evident in this Division of Revenue Bill. The equitable division of revenue amongst the three spheres of government is also premised on one of the main pillars of the RDP - that of meeting the basic needs of the people.
Chapter 8 of the 2007 Budget Review outlines the shift that reflects a significant increase in the allocation to local government and provincial governments, that sees more than 60% of additional allocations transferred to these spheres. This is in line with the continuing trend of ensuring that more funding is deployed where actual delivery needs to take place - that is, at local and provincial government levels. Local government's share of national revenue shows the strongest growth, of 19%, over the MTEF period, according to this chapter, mainly to support the roll-out of free basic services and infrastructure; while national and provincial shares grow by 10,3% and 12,7% respectively. The provincial allocations mainly cater for the acceleration of social services, with a particular focus on housing, education, HIV and Aids, hospital revitalisation and public transport.
Lokhu kuzibophezela kukahulumeni oholwa uKhongolose ekwenzeni izimpilo zabantu bonke zibe ngcono kubonakala ngokusobala kulesi Sabiwomali, ikakhulu lapho seyabiwa ngezigaba zohulumeni ngokwehlukana kwabo. Bheka ngoba umthamo uya ngokuya ukhula ezifundeni nasezifundazweni lapho umsebenzi wokuthuthukisa izimpilo zabantu ukhona.
Ukwakhiwa kwezingqalasizinda kungumgogodla ekuxosheni ikati eziko kanti futhi kuyisisekelo sokuthuthukisa umnotho ezindaweni zethu. Lokhu kwabiwa kwezimali ezifundazweni, kuphinde futhi kubhekele ubuhlwempu nokusilela emuva kulezi zifundazwe ngenhloso yokuzama ukulinganisa izimpilo zabantu.
Ukulethwa kwezidingongqangi zabantu nakho futhi kuthola umthamo othe xaxa ezindaweni lezo ezisilele emuva kakhulu. Mangikusho lapha, Somlomo, ukuthi mhlawumbe umuntu kufanele avumelane nobaba uMpontshane maqondana nokuthi, ekulethweni kwezidingo zabantu, amanzi, ugesi nokuqedwa kokusetshenziswa kwamabhakede, kufanele sengeze ukuze kuqedwe lesi simo. [Ubuwelewele.] Cha, siyavumelana. Asijwayele ukuvumelana kodwa siyavumelana nobaba uMpontshane. (Translation of isiZulu paragraphs follows.)
[The commitment of the ANC-led government to make better life for all is clearly evident in this Budget, especially when it is distributed to different spheres of government. The larger portion of the amount is gradually directed to the provinces and the local governments where the work of making people's lives better is.
The building of infrastructure is core in getting rid of hunger and it is the foundation of economic development in our places. This distribution of revenue to provinces sees to it that poverty and backwardness in provinces are addressed with the aim of uplifting the lives of the people.
The delivery of services to the people also receives a larger amount to those areas that are far behind with development. Let me say here, Madam Speaker, that maybe one must agree with hon Mpontshane that we need to work a little harder in delivering services like water, electricity and the eradication of the bucket system. More should be done to do away with this situation. [Interjections.] No, we agree. We are not used to agreeing, but we agree with hon Mpontshane.]
We are always warned by the defenders of apartheid that we should not blame our backlogs on apartheid. But it is not possible to forget that had apartheid not excluded the vast majority of our people from the provision of basic services, we would not be talking about it today. The resources that are being spent on addressing the backlogs would have been used in maintaining the infrastructure instead of building it. Thanks go to the people of South Africa for realising that only the ANC could deliver them from the evils of apartheid, and our resolve to do so is growing stronger by the day.
One of the flagship programmes that receives a sizeable chunk of funding is the neighbourhood development partnership. This grant provides financial assistance to municipalities for partnership-based community and commercial infrastructure in townships and informal settlements. Its main focus is on precinct, town centre and high street development projects with an estimated project value of over R9,2 billion over the next decade. As explained in the Budget Review, it supports the creation of high-quality development that aims to overcome spatial and economic distortions endemic to townships.
The principle here is to retain and increase the buying power within townships, and create environments that improve the quality of life and attract private sector investment. In his speech, the Minister mentioned the areas that have taken advantage of this programme, taking up an amount of about R50 million in technical assistance to date.
A number of other grants are allocated to provincial and local governments to further strengthen and enhance service delivery in these spheres. Of particular note to provinces, is the Community Library Services Grant, which is meant to consolidate library services at provincial level. We trust that this grant will be put to good use, and promote the culture of reading, especially if library services are going to be located where the majority of the people live, and be properly and adequately resourced.
My colleagues will speak on the other grant allocations and the Financial and Fiscal Commission's recommendations. Minister, I trust that Ms Mabe will cover that area that you raised as a concern. Ms Mokoto will focus on the 2010 Fifa World Cup, related funding and the capacity-building transfers. Ms Mabe will also have to cover the expenditure trends in provinces and our oversight role as Parliament.
The ANC government's commitment to achieving a better life for all is a matter of policy, and not grandstanding, as colleagues on the other side of the iron always make it. It dates back to our founding, and our record speaks for itself.
The committee considered the Division of Revenue Bill and passed it without amendments. We trust that the Select Committee on Finance will apply its mind without prejudice, and with the information at their disposal. They are under no obligation to endorse our position. If it is in the interest of the country, they have every right to propose amendments. The ANC supports the passing of the Division of Revenue Bill in this House. I thank you. [Applause.]