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Debate on the Appropriations Bill 2018 by Ndabakayise Gcwabaza (ANC)

25 May 2018

Honourable Speaker
Hon.President and Hon.Deputy President
Hon.Ministers and Hon.Deputy Minsters
And Honourable Members

Kulonyaka wokugubha iminyaka eyikhulu yokuphila kwamaqhawe oMzabalazo wenkululeko yezwe lethu, oBaba Nelson Mandela kanye noMama uAlbertina Sisulu,oholwa yi African National Congress,kufanele sibuyekeza kafushane ibanga esesilihambile kwezomnothe kuleminyaka engamashumi amabili nane.

South Africa`s Gross Domestic Product (GDP) annual growth rate averaged 2.8 percent from 1994 to 2017.It reached an all time high of 7.10 percent in 2006 before it declined to -2.6 percent in the second quarter of 2009 as a result of the Global Financial Crisis (GFC).

Then it recovered to 1.5 percent year-on-year in the Fourth Quarter of 2017 supported by a recovery from the negative impact of the global financial crisis. This recovery was brought about by the rebound in manufacturing and utilities and a strong growth in the services sector.Equally the recovery was supported by public spending especially on infrastructure, on programmes such as the Extended Public Works programme and the Incentives Development Programe of the DTI.

These are some of the government programmes which have assisted in job retention,job creation and in putting disposable incomes in the hands of many households.

Kuso lesisikhathi seminyaka engu24 kuHulumeni wentando yeningi kusuka ngo 1994 kuzofika kulonyaka ophezulu u 2018, kwakhiwe imisebenzi engangezigidi ezinhlanu nenkulungwane ezingamashumiayisithupha ayisithupha (5,6 million jobs).Sikhuluma nje kunabasebenzi abayizigidi eziyishumi nesithupha kanye nenkulungwane ezine kuzozonke izizinda zemisebenzi.

In monetary terms SouthAfrica`s gross domestic product (GDP) grew from $136 billion,that is just over R1trillion in 1994 to $384 billion,which is estimated at than R4 trillion.

Inkinga ekufanele ixazululwe ukuthi lezigidigidi ezine (R4 trillion) zisezanldni eziyingcosana zabantu baseNingizimu Afrika.

Yingakho nje uHulumeni kaKhongolose uthi sesishayile isikhathi sokuthi umnotho ubuyele ezandleni zeningi kakhulukazi abantu abamnyama.

The economic statistics mentioned above on GDP growth and an increase from 9 million in 1994 to 16,4 in 2018 is a clear demonstration of the ability of the ANC government to create a conducive environment so that the economy can grow and create decent jobs, reduce poverty and inequality.

What then does the ANC seek to deliver through the Appropriations Bill 2018 0n the economic front?

Isabelo sezimali kuloMthetho Sivivinyo ka 2018/19 nezinhlelo zokusebenza zikaHulumeni zihlose ukuqinisekisa ukuthi iningi labantu abamnyama kakhulukazi ulusha,abesifazane kanye nabantu abanezimo zokukhubazeko (youth,women and people with Disability) ,abakhele izindawo zasemakhaya kanye nabasemadolobheni, bangene ngokuphelele ekulewulwnini,nokwakhkhiwa komnotho wezwe lethu.

UHulumeni kaKhongolose ufake izigidi zamarandi ezingamashumiamahlanu nesikhombisa (R57 billion) eMnyangweni wezeMfundo Ephakeme kanye namaKhungo zokuqeqeshelwa amakhono emisebenzi (TVET Colleges).Le yimali yokufunda mahala emaNyuvesi nasemaKolishi kwezingane zemindeni ehola ngaphansi kwamarandi angamakhulu amathathu namashumi amhlanu (below R350 000) Loku kuhlose ukwandisa amathuba okuthola imfundo nokuqeqshwa ezingeni eliphezulu lemfundo ukuze ulusha lungene nokuzethemba ekwakheni, ekulawuleni, nasekwakheni umnotho nemisebenzi ezigidi eziyishumi nanye (11 million jobs) ngo2030,njengoba kusho iNational Development Plan.

The Budget of the DTI whose core function is to implement the industrial Action Plan by intensifying industrialization, manufacturing of beneficiated and value added goods for domestic consumption and for exports has a budget of R30.2 billion over the MTEF. It will carry out this task through instruments such as grants, loans and tax allowance under the Incentive Development Programme. The programme also aimsto attract R60 billion investment for agro-processing,metal fabrication,chemical and plastic sectors.

The Special Economic Zones and economic Transformation programme will expand the participation of black-owned manufacturing businesses.In the same vein the Black Indusrtrialistist progarmme is allocated funding to increase the participation of black people in the mainstream economy.

In the 2016/17 and 2017/18 financial years the Small Business Development Department has supported over seven hundred thousand small micro and medium enterprises and cooperatives which were also assessed for company income tax for the 2016 tax year.

Through the 2018/19 to 2020/21 FYs 2 192 black-owned SMMES will be supported with an amount of R859 million under the Enterprise Development and Entrepreneurship Programme.

Over the past ten years, public spending in social and economic infrastructure has amounted to R2,2 trillion. Weaknesses in project preparation, execution and delivery have resulted in long delays and cost overruns.

Over the current MTEF infrastructure has been allocated R834,1 billion targeted at energy, transport and logistics, and ware and sanitation. The SOCs remain the largest contributors, accounting for R368,2 billion. The Budget Facility for Infrastructure has been established whose task is to build a pipeline of projects that have undergone rigorous technical analysis, and to ensure that resources are committed in a transparent manner. Already 38 large infrastructure projects are ready for implementation and more will be considered for funding and implementation in the course of this year.

We mention these few examples out of many to demonstrate a couple of things, namely, that:

1.Notwithstanding the negative effects to our economy of external factors such as the 2008 to 2010 GFC, the recent geopolitical and economic tensions on international trade and the domestic factors such as State Capture, corruption and the fiscal challenges, the ANC government is a government at work. It is a government at work because the New Dawn the president spoke about in the SONA clarifies and intensifies the ANC`s resolve to implement 53rd Conference resolution on the second phase of the NDR, in particular, RET and the 54th Conference Resolution on Expropriation of Land Without Compensation

2.The ANC is a government hard at work because the New Dawn has ushered in a period of tackling head on the state capture through the Commission of Inquiry, corruption and fraud through law enforcement agencies and appointment of persons with integrity in the governance structures of SOCs so that the SOCs are better able to fulfill their mandate of contributing to building a developmental state and to developing the economy and the enforcement of prudent spending in all the three spheres of government.

3.Given the great achievements during the twenty-four years of democracy, albeit the intervening downsides, the ANC government is capable of creating eleven million jobs by 2030 as the NDP directs us to do and reducing poverty, and inequalities.

Ultimately, radical economic transformation and expropriation of land without compensation are so intertwined that it is not possible to carry out successfully the one without the other. The final product which will sustain our democracy must be the elimination of class, race and gender as determinants of one`s social and economic station should be.

     
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