Chair, to continue ... [Interjections.] Many First World nations like Greece, Portugal and Ireland are facing bankruptcy. If we really want to escape that predicament, we must act fast and with vigilance to stabilise our GDP.
We cannot want to generate the country's revenue by unscrupulous means. The e-tolling is one of the worst examples. The emerging inflationary pressures, such as interest rates, fuel price volatility and high electricity prices, all create a very claustrophobic economic environment.
In 2001, as much as 40% of the South African government's revenue went to meeting government salaries. This country's Budget, as announced by the Minister of Finance, has already gone over a trillion rand in the government expenditure plan.
The Minister of Finance wants greater citizen activism to achieve maximum service delivery, something Cope has been calling for. Cope further believes that the financial and administrative fallouts that happened in Limpopo, Gauteng and the Eastern Cape are a direct result of not being vigilant and poor citizen activism.
Municipalities around the country are in crisis. Since 2005, when national government declared that 136 out of 284 municipalities were unable to fulfil their basic functions, this trend has not changed. In fact, it has gotten worse since then. Local government has become virtually synonymous with illegal tendering practices, unauthorised loans to councillors and, in some cases, outright looting. A number of municipalities have been placed under administration in recent years for poor performance.
Municipalities and provinces generally spend more than 30% of their budgets on salaries; the other 70% should go to infrastructure and service delivery. However, the total amount paid in salaries to mayors, councillors and municipal officials outstrips spending on services by billions.
President Zuma observed that:
The last 15 years have exposed serious gaps in intergovernmental co- ordination. Too often we have observed different spheres of government acting in a manner that is sometimes contradictory.
Duplication of work and payments are common cause in this regard. While we go about our business as usual, the poor are getting poorer and their hopes are fading. For how long will government avoid addressing these issues head- on? A lack of attention will therefore pose a long-term fiscal risk to the country.
The South African government adopted the United Nations Millennium Declaration to increase economic growth and employment, focusing on redistribution. When are we going to get a report to indicate to what level poverty and inequality have been reduced? I thank you, Chair. [Time expired.]