Madam Chairperson, hon Minister of Finance, hon members and members of the public, when the ANC leadership, together with its alliance partners, took a conscious decision that it will engage in multiparty talks with the apartheid regime to prepare for the democratisation of the country and to eventually contest the elections, it was propelled by the need to deliver a better life for all South Africans and the great saying that:
None of the great social problems we have to solve is capable of resolution outside the context of the creation of jobs, the alleviation, and the eradication of poverty; and therefore, the struggle to eradicate poverty has been and will continue to be a central part of the national effort to build a new South Africa, where all human life is equal.
Our historic decision and the subsequent ascendance of the ANC to power has consistently derived its importance from the reality that it will impact significantly on the current situation and the future of our country and its people. In 2005, at its national general council held in Tshwane, the ANC sincerely declared that South Africa had reached a new phase of the national democratic revolution. This has, therefore. meant that the consolidation of political democracy, the growing electoral strength of and the support for our movement, and the relative stabilisation of our economy have created a new set of opportunities and challenges for social transformation.
Indeed, as the ANC, we have no other option but to agree with the hon Minister of Finance, Minister Trevor Manuel, when he expressly said: "In the spirit of the Freedom Charter, people's lives hold equal value". For the past six years, our economy has recorded a steady growth and wellbeing, when compared to other economies around the world.
Our current budget has increased significantly since the 2004-05 financial year, and it has continued to do so at a very exceptional rate. This has paved ways for a phenomenal increase on the additional allocations expected to remain at R89,5 billion over the medium-term. The additional allocation arose as a result of major savings on the government expenditure and a savings on the interest accumulated as a result of the low cost of servicing debt.
It is important to note that the additional allocations are appropriated for focused government programme areas within departments and other layers of government only serve to augment the already existing allocations provided in the main Budget. The additional allocations will, therefore, address identified priorities for the government at a specified time.
We are, however, of the view that the allocations cannot be used to substitute any form of revenue collection, especially in municipalities, an exercise which still remains a dilemma for many of our municipalities which still struggle to collect own revenue for self-sustenance.
I want to highlight that our government has now been provided with renewed impetus and possibilities to introduce accelerated growth, broad-based development with more emphasis on key government priorities like social services, education, health, crime prevention, public sector, infrastructure, and the much-awaited 2010 Fifa World Cup tournament.
As the ANC, we will continue to acknowledge the fact that the rapid growth in the budgeted expenditure does pose a challenge with regard to the capacity to utilise these amounts, particularly in the municipalities and within certain departments, at both national and provincial levels. Government spending patterns in most instances leaves too much to be desired. As part of exercising our oversight roles as parliamentarians, we have to ensure that in all, the government fully accounts on the mandate of the people. It is important to highlight that this kind of mannerism, which is gradually becoming a norm, can neither be tolerated nor condoned as it continuously compromises service delivery to our people, as a consequence of insufficient and untimely planning by certain senior managers in the government.
However, regarding the situation, we have to acknowledge that real spending on capital expenditure in proportion to the unspent capital funds dropped by 8% in 2005-06 financial year from 14% in the previous financial year. Despite this drop, we expect a much higher rate of underspending in 2006-07 financial year.
As Members of Parliament, we have taken note of the levels of seriousness with which the government is tackling this matter. It is the view of the ANC that the Siyenzamanje and Project Consolidate intervention programmes jointly run by the Development Bank of South Africa and national government in several municipalities around the country are surely and gradually emitting positive results for the many municipalities that previously suffered serious scarce skills shortage.
It has taken us more than a century to convince the world what a great potential Africa holds. The initial allocations of R4,1 billion made for the 2010 Fifa World Cup further increased with an additional of R13,3 billion for the building of stadiums and associated infrastructure. The government, through this generous appropriation for the Fifa World Cup, has fully reasserted its position and commitment towards the successful holding of this tournament in a manner which was not anticipated.
We are greatly encouraged by the positive spin-offs that will arise as a result of hosting the 2010 Fifa World Cup tournament. These benefits will surely have an immense impact on the economic growth, job creation, youth development, tourism and skills development in the country. This will produce further ripple effects for the rest of the African continent.
As seasoned revolutionaries, we wish to declare that the age of hope shall never leave our people or our continent. The ANC supports the Budget Vote. Thank you. [Applause.]