Mr Speaker and hon members, the 2013 Budget was delivered at a time when South Africa's economic growth outlook is moderated by a number of risks. Recession in the Eurozone, coupled with slow economic growth in some of the major economies and concerns about political stability here at home have negatively affected our economic performance.
Nowhere is this more evident than in South Africa's current poor economic performance, such as the 2,5% gross domestic product, GDP, growth, budget deficit of 5,2%, current account deficit of approximately 6% and government debt of nearly 40%.
These important macro economic performance indicators demonstrate that there is very little room for government to manoeuvre. To embark on fiscal consolidation, government will have to walk the talk in rooting out corruption and wasteful expenditure.
One of the things that government has to do is to deal decisively with the overreliance of state departments on consultants and independent contractors.
It also has to work hard to create an environment that is conducive to both international and domestic investors. This it can do by addressing concerns about political stability in the country and perceptions of heavy-handed government interventions in the private sector.
We do, however, commend the Finance Minister's emphasis on keeping the budget deficit in check and the measures he has taken to reduce the rate at which public expenditure was escalating. Millions of our youth bear the brunt of poverty and unemployment. In this regard, we welcome the Minister of Finance's proposed youth employment tax incentives scheme which seeks to expand work opportunities for young people.
We also welcome the R840 million allocated to the Municipal Support Infrastructure Agency as this will help struggling municipalities in rural areas to improve the quality of their infrastructure service delivery and therefore, the quality of life of previously disadvantaged communities.
We are pleased with government's renewed focus on intra-Africa trade and consolidating South Africa's position as the port of entry to trade on the continent.
We once more call on the Minister to root out corruption and wasteful expenditure in every sphere of government in order to ensure value for money for the people of South Africa. The UDM supports this fiscal framework. Thank you.