Division Of Revenue Bill

Ms Sj Nkomo, MP

The process of the equitable division of nationally raised revenue between the 3 spheres of government in alignment and after taking into account the factors prescribed by Section 214(2) (a)-(j) of the Constitution as well as governments response to the Financial and Fiscal Commission’s recommendations remains at the heart of our constitutionally mandated cooperative governance.

Alignment with the National Development Plan together with the key drivers thereof to facilitate quicker growth by addressing our long standing structural constraints like skills shortages, unemployment and infrastructure challenges must be priorities as we strategically allocate fiscal revenue.

Honourable speaker, it’s no secret that the current political instability at the heart of this government is placing the entire country on a precarious and perilous trajectory towards economic collapse. This is due the prevailing insanity in the ruling party of protecting one individual over and above the interest of an entire nation.

Our rand is projected to further weaken during the coming period and is now more vulnerable than ever to global uncertainty.

Our domestic environment is challenged by high unemployment, income inequality and basic and continuing service delivery failures and protests.

Stringent management of public finances in this low growth period must be carefully balanced as there is intense pressure to spend, increasing debt and debt service costs and threatened downgrade to ‘junk status’ looming as a delegations from Moody’s will be visiting South Africa between 16 -18 March as well as various reports from Standard and Poor and Fitch ratings agency’s.

Our parastatals remain a fiscal drain with most contributing negatively towards economic growth. It’s high time that such squander of tax payer money is halted. Privatisation or at the very least, a transfer of SOE’s as a line function under the various departments in which they fall must be receive immediate attention by the executive.

Honourable Speaker, with economic growth projected at just 0.7% for this year, the current climate of drought is set to intensify, power shortages set to increase winter on the way, agriculture in a poor state and a macro-economic global contraction underway, we must ensure that every rand we spend is turned over at least 3 times.

There is no room for error, negligence or corruption. These must be ruthlessly stamped out wherever they occur. Treasury must maintain the most stringent of oversight.

In the Minister of Finance the IFP – and in fact, all the people of South Africa, place our trust!

I thank you.

Hon SJ Nkomo, MP