Deputy Speaker and hon Members of Parliament, the world has experienced the worst financial and economic contraction, some say since 1930, others would say 1992 or 1993. Although the medium-term growth is low, South Africa's good economic choices over the past decade have allowed it room for the bold response that was presented in the Medium-Term Budget Policy Statement, MTBPS, by the hon Minister of Finance, hon Pravin Gordhan.
The Minister has tabled a series of policy measures that should contribute towards pushing back the frontiers of poverty. The Minister of Finance, in his foreword on the MTBPS, quoted the constitutional vision that enjoins us:
... to improve the quality of life of all citizens and free the potential of each person as we build a nation based on democratic values, social justice and human rights.
This is in line with the ANC's vision of creating a better life for all, understanding the challenges of confronting decades of subjugation, unemployment and the widening gap of inequalities between the rich and the poor. The Gini coefficient has now moved beyond 0,5 signalling the worsening inequalities.
In the past few months, an estimated 500 000 jobs have been lost, adding to the already high unemployment rate. This only serves to increase the challenges that face South Africa as a developmental state. That is why the ANC at the 52nd National Conference resolved to capacitate and build a developmental state that today has set bold policy measures to enable South Africa to respond to the changed economic environment and construct a more robust platform for growth as the world economy recovers.
In fact, the International Monetary Fund, IMF, believes that the world economy is beginning to turn the corner. This MTBPS enjoins the government to ensure that limited resources are utilised to produce maximum outputs without compromising the quality of services delivered.
An additional Budget of R78 billion over the Medium-Term Expenditure Framework, MTEF, is certainly most welcome. As the ANC, we congratulate the Minister for not revising down the Budget estimates, but boldly keeping them intact and ensuring that the priorities of the government are advanced to ensure that rural development, amongst others, is firmly placed on the agenda of service delivery.
The challenge facing the ones robbed of their land is the absence of a budget for land restitution and the creation of new farmers. Obviously, rural development cannot be relegated to one department as all departments have a role to play, including the Department of Economic Development, so that those who want to remain in the rural areas are allowed to do so. Many beneficiaries of land restitution have to wait for years before they can be compensated because of lack of budget. This is unacceptable.
We invited the Human Sciences Research Council, HSRC, who shared their warm appreciation for the vision and MTBPS, although they raised certain reservations. One of the reservations, amongst others, is funding for health.
The ANC acknowledges the MTBPS for taking into account the importance of local governments by ensuring that the Municipal Infrastructure Grant, MIG, grows over the MTEF period. It may not be enough, but it will go a long way in ensuring that, one day, there will not be much difference in infrastructure development between rural and urban areas.
The commitment of this government in creating sustainable and descent jobs is very clear in the MTBPS, if you look at the budgetary commitment for infrastructure.
The strategy and tactics document states:
The central task in the current period is the eradication of the socioeconomic legacy of apartheid; and this will remain so for many years to come. However, the establishment of a government based on the will of the people, progress in the transformation of the state, the codification of rights and implementation of progressive socioeconomic programmes represent a major change in the sociopolitical environment.
I would like to take this opportunity to thank members of the Standing Committee on Appropriations, across political parties, and staff for their support in ensuring that the MTBPS report was produced timeously and adopted unanimously by the committee members.
I also thank my secretary for going the extra mile to ensure that everything ran smoothly. The ANC support the MTBPS. I thank you. [Applause.]