Deputy Speaker, hon Minister, the ACDP is on record as commending the Minister on his prudent Budget, given the very difficult global and domestic economic environments. It was generally well received. Even the World Bank has commended the government for providing fiscal policy certainty.
The widening of the 2012-13 Budget deficit to 5,2 % was regrettably unsurprising, given the lower than forecast global and domestic economic growth last year, with an estimated revenue shortfall of R16,3 billion.
However, the Finance Committee is on record as expressing concerns about increasing government debt levels. The size of the Budget deficit at present results in debt service costs rising faster than any other category of spending over the medium-term. This, of course, crowds out spending on developmental priorities.
On the other hand, the ACDP understands the need to stimulate economic growth in the short-term to create more sustainable jobs. It is imperative that if government wants real economic growth, it must create an environment to make South Africa more competitive, efficient and productive. We thus welcome a shift in spending from consumption to the productive side of the economy with a massive infrastructure development programme.
The ACDP particularly welcomes the alignment of the Fiscal Framework with the National Development Plan, NDP, which proposes a social compact to reduce poverty and inequality, and raise employment and investment. The plan needs to be implemented as a matter of urgency - those issues that can be implemented - and those trade unions that are opposed to it need to be encouraged to come on board.
The trade-off of the increased Budget deficit was, of course, the fact that corporate and personal tax rates were thankfully not increased. In fact R7 billion of personal tax relief was granted. This is significant, as the commitment to reduce the Budget deficit to about 3% by 2015-16 remains. And this, we believe, should satisfy ratings agencies.
One of the ways to address the Budget deficit is, of course, to decrease the amount of wasteful, irregular and corrupt state expenditure, and the Minister spent a lot of time on that.
We are pleased as the ACDP that our recommendation to increase the capacity of law enforcement agencies such as the Hawks, the National Prosecuting Authority, NPA, the Special Investigations Unit, SIU, and the Asset Forfeiture Unit, AFU, was accepted, and we believe that in this way millions, and possibly billions of rands could be saved.
Last year, the ACDP suggested that faith communities should be approached so that they can encourage members of all religions to say no to corrupt practices. We wish to commend various nongovernmental organisations, NGOs, and church leaders who launched their Exposed Campaign last night. This is an international campaign aimed at challenging global churches, business and government to highlight the impact of corruption on the poor. It is a call against corruption, greed, secret deals and abuse of public influence. We commend this initiative, and as Members of Parliament, MPs, we should encourage and build on this and other similar campaigns to fight corruption.
We will not be able to address systemic poverty until we address systemic corruption. The ACDP will support the Fiscal Framework and Revenue Proposals. I thank you. [Applause.]