Chairperson, the ACDP supports the Medium-Term Budget Policy Statement, in broad terms, as it reflects our strong macroeconomic fundamentals despite a high inflation environment and the decrease in economic growth prospects.
We note the concept of structural budget balance. This is intended to ensure that public spending is protected even if economic conditions worsen. This is the reason for budgeting for a surplus of approximately 0,6% of the Gross Domestic Product over the next three years.
Clearly, it is very important that when economic conditions deteriorate, there needs to be resources to cushion the economy against global volatility. This is a sound and reasonable approach, which we support, and is in line with international best practice.
With the core priorities being the strengthening of education, public health and social welfare services, we welcome the additional R36,1 billion to the provincial baseline allocations over the next three years, as well as additional funding to fight crime. It is crucial, however, that we remain committed to poverty relief and employment creation, whilst not over- stimulating consumption, which has now resulted in interest rate hikes and has contributed to the worrying current account deficit of 6,7% in the GDP.
The ACDP particularly supports Treasury's efforts to ensure that departments use resources more efficiently to deliver better value for money. Quality and efficiency are issues that must be addressed. In view of the widespread shortage of skills, however, it is disgraceful that the Setas charged with skills training should hold R3,7 billion in cash reserves. Clearly, they are woefully underperforming.
Trade liberalisation is, of course, an important issue, and we note the Minister's views regarding the reduction of South African industry tariffs and duties, unilaterally if necessary, to boost exports and economic growth. It is interesting to note that China and India have been unilaterally reforming their tariff regimes.
We note the differences in approach between Treasury and the Department of Trade and Industry, DTI, on this issue, and trust that the Finance Minister's good sense will prevail in this regard. At the end of the day we will be judged by the extent to which economic growth translates into more jobs to address the poverty experienced in our country - that is the ultimate challenge. The ACDP supports the Policy Statement. I thank you. [Applause.]