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Debate on the Division of Revenue Bill 2017 by Ndabakayise E Gcwabaza (ANC)

15 March 2017

Hon.Speaker
Hon.President and Dep.President
Hon.Ministers and Dep.Ministers
Honorable Members

The Division of Revenue Bill 2017 once again shows that over sixty percent (60%) of the nationally collected revenue is allocated to the Provincial legislatures and to Municipalities in Provincial and Local Government Equitable Share and Grants.

While this Bill indicates a reduction in the spending ceiling for all the three spheres of government, the actual spending on the priorities of government as spelled out in the Medium Term Strategy Framework, and further articulated in the January 8th Statement of the ANC, the President's SONA and the Finance Minister's Budget Speech in February 2017, have not been adversely affected. The reduction in the expenditure ceiling is part of fiscal consolidation one of whose aim is to cut down spending on non-essential items and to increase and strengthen spending on the specific priorities.

LOKHU KUBANAKALA NGOKWENUSWA KWEMALI EYABELWE INGQALALKUFUNDA KWEZINGANE iEarly Childhood Development.Futhi iHulumeni kaKhololose uyayikhathalela inhlalakahle yemiphakathi.Yingako nje kunesabelo esisha sokuqashwa koSonhlalakahle (Social Workers).Kanti kungokuqala ukuthi liHulumeni akhipe isabelo semali yokwenza ncono ukufunda kwalezingane ezingasheshi ukubamba kahle emfundweni.LOKU KUZOSIZA LEZI ZINGANE UKUTHI ZINGASALELI EMVA KOZAKWABO EMFUNDWENI.

The fast growth of local government equitable share and in Direct and Indirect Grants is responding to the need to shift financial resources from urban municipalities with a strong revenue base to the poor rural municipalities with the aim of improving the delivery of basic services to poor and rural communities. This is what the Division of Revenue is referring to when it talks about reprioritizing our priorities.

The large amounts of equitable transfers and grants to the subnational spheres of government impose the imperative for integrated planning, implementation and monitoring in order to deliver better service and achieve the intended expenditure outcome.

This calls upon the National departments to strengthen oversight and monitoring in the spirit of cooperative governance and Intergovernmental Fiscal Relations. Section 44 (2) of the Constitution allows strong fiscal relation among the three spheres of government. Equally Parliament and Provincial Legislatures must cooperate through their committees to step up oversight on all departments and municipalities in pursuit of better quality of services and the attainment of the intended spending outcome.

THE ANC IS COMMITTED TO ENSURING THAT COMMUNITIES SEE AND FEEL THE IMPACT AND BENEFIT OF GOVERNMENT SPENDING.

The special focus in the ANC's January 8th Statement, the president's SONA on the Radical Socioeconomic Transformation infrastructure spending of R950 billion allocation in the Division of Revenue bill and the R500 billion government spending on goods and services, and the expropriation of land must serve as catalysts towards achieving the transfer of ownership, control and management of the means of production in a manner that creates decent work and reduces inequalities.

We wish to highlight that 45% of infrastructure spending is driven by the SOEs, 20% by Provinces and 18% by municipalities. The importance of integrated planning and execution, accountability and strong oversight cannot be over-emphasized.

THE ANC GOVERNMENT IS COMMITTED TO ENSURING THE COMMUNITIES SEE, FEEL AND BENEFIT FROM GOVERNMENT SPENDING.

The ANC supports the Division of Revenue Bill 2017.

Thank you.

     
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