Hon Deputy Speaker, the report that I am going to be presenting is almost similar to what I have already said, both in terms of content and subject. Nonetheless, let me just focus, most importantly, on the recommendations of the report.
We have, as a committee, observed the importance of what National Treasury has proposed in terms of a shift in the spending path in the government, particularly with regard to the issue of ensuring that we increase more on the side of capital expenditure rather than the current expenditure, as well as observing the developments in the international and global economy so that we can ascertain projections and stability in that regard.
Having considered the 2010-11 Medium-Term Budget Policy Statement and conducted the hearing on the same subject, the Standing Committee on Finance will then recommend the following: Firstly, National Treasury should present a detailed plan to the committee on how it plans to change spending patterns from current consumption expenditure to productive spending.
Secondly, the National Treasury should present a detailed plan to the committee on the steps to be taken to reduce leakages from the public financial systems.
Thirdly, the National Treasury should also provide the committee with a contingency plan in the event that the outcome of microeconomic variables is not as expected in the revised fiscal framework. The National Treasury, and the Reserve Bank in particular, also should, as another point of importance, ensure that the inflation targeting within the range of three to six percent should be observed within the next financial years.
We as a committee also said that it would be important for National Treasury to take all necessary steps to encourage and ensure that the percentage of the state wage bill is brought back from 40%, in terms not of the gross domestic product, GDP, as reflected in the report, but in terms of the government total expenditure.
Lastly, we as a committee also said that National Treasury should provide the committee with detailed plans on the following areas: Intergenerational Equity Policy; Countercyclical Policy in terms of the Fiscal Policy Framework; and Debt Management Policy. The House is encouraged to accept the 2010-11 Medium-Term Budget Policy Statement. Thank you. [Applause.]