Chairperson, hon members and hon Minister of Finance, Mr Pravin Gordhan, the MTEF provides for a total of R808,3 billion to be allocated in the 2011-12 financial year, R865,9 billion in the 2012-13 financial year and R925,6 billion in the 2013-14 financial year. We have a contingency reserve of R38,9 billion. Moreover, provision has been made for debt service costs that will amount to R77 billion for 2012, rising to R104 billion. Can the Minister clarify for us what it is that he means by this? What is this increment for debt service costs?
The aggregate expenditure over the next three years excludes R94,1 billion in additional noninterest allocations over the baseline projections on the 2010 Budget. Of these additional allocations, R48,8 billion goes to the national government, R40,2 billion goes to provinces and R5,1 billion goes to local government.
With regard to conditional grants, we see here that provinces received R69,4 billion, including indirect transfers of R700 billion for the schools infrastructure backlog grant.
We, as Cope, appreciate the changes effected on the Bill. But are we sure that we have qualified members on the ground to utilise the budget that has been allocated? If the Minister can agree that we have suitable people to utilise the budget, then what will be his reaction to the statement made in Die Burger on 8 April 2011 which says ...
Ek haal aan:
Minister Pravin Gordhan, die Minister van Finansies, het Maandag in die Staatskoerant aangekondig dat R2,4 miljard van agt provinsies weggeneem word weens onderbesteding.
Ek verstaan dat die R2,4 miljard teruggehou word totdat die projekte die oorbetaling na die provinsies regverdig. Minister, my vraag is: Is dit hoe dienslewering bevorder word? (Translation of Afrikaans paragraph follows.)
[I quote:
Minister Pravin Gordhan, die Minister van Finansies, het Maandag in die Staatskoerant aangekondig dat R2,4 miljard van agt provinsies weggeneem word weens onderbesteding.
I gather that the R2,4 billion is being held back until the projects justify the transfer of funds to the provinces. Minister, my question is: Is this how service delivery is promoted?]
We also welcome government's decision to directly target the infrastructure backlog and set timeframes for the process. This was in line with the recommendations made by the Financial and Fiscal Commission, FFC, in 2002. We also align ourselves with the FFC recommendations of cautioning the government against the diversion of resources away from priorities which may not lead to a better output. Therefore, R267,2 million has been allocated to the Expanded Public Works Programme, EPWP, incentive grant for provinces to increase job creation. But at the same time, this amount has been decreased by R63,8 million from R331 million in the 2010-11 financial year. Can the Minister tell us what the vision of this reduction is? [Interjections.] [Time expired.]