24 February 2004
When the Minister of Finance delivered his Budget Speech on the 18th February 2004, he also tabled the Division of Revenue Bill, which is before Parliament today. This Bill is a Constitutional requirement that determines the equitable division of nationally raised revenue between the three spheres of government (vertical), and the horizontal division among provinces.
In his speech, the Minister referred us to the principles of the Reconstruction and Development Programme underpinned by five major policy programmes:
For purposes of this debate, allow me to address myself to the task of democratizing the state and society and that of meeting basic needs of which the Division of Revenue is central. The ANC's commitment to the course of equality and socio economic development is demonstrated by, among other things, this piece of legislation. "Democratizing is integral to the RDP. Without thoroughgoing democratization the resources and the potential of our country and its people will not be available for a coherent programme of reconstruction and development." (RDP page 11). The matter of equitable division of revenue is an issue of human rights enshrined in our constitution in line with the freedom charter adopted by the people's congress in 1955, in Kliptown. When the Division of Revenue Bill is tabled, one thing that is of prime importance is how it takes into account all the matters listed in section 214 (2) (a) to (j) of the Constitution. These include: national interest, provision for debt, national government needs and provision of CMBS by provinces and local government) and these are covered by the FFC recommendations (one of my colleagues will deal with the FFC recommendations).
Given the history of this country, where resources were not shared equitably among all citizens, it becomes imperative that the new democratic order is supported by democratic instruments like this Bill. Our systems have matured and they ensure the progressive realization of socio economic rights and the creation of people centered and transparent processes that address the legacy of apartheid. There has been steady improvement in the provinces' capacity to spend efficiently and compliance with the PFMA has been positive lately. This year also sees the phased implementation of the Municipal Finance Management Act, and I am confident that this will also add to the already developing trend of accountability and transparency. Considerable funding has been dedicated to build capacity in local government in areas of management, planning, technical, budgeting and financial management.
As we debate the Division of Revenue Bill today, I am tempted to reflect on the past; when the majority of us were marginalized and totally excluded from sharing in the resources of this country, totally disregarding our basic human rights. This gave rise to the situation that the ANC government inherited in 1994. Our people were condemned to live in places that are not suitable for human habitation and were referred to as 'surplus people'. Despite the tremendous progress that the ANC has made in addressing these disparities, many challenges still confront us. This division of revenue takes us a step closer to the realization of our dream of a better life for all and building fiscal capacity and efficiency of the provincial and local spheres and the reduction of economic disparities whilst promoting stability and predictability.
Building on the Growth and Development Summit resolutions and the Ten year Review ('Towards a Ten Year Review') this Division of Revenue feeds into the 2004 MTEF's renewed focus on strengthening investment and job creation, reducing poverty and supporting vulnerable groups, education and skills development, creating sustainable communities and enhancing service delivery.
One of the key challenges facing delivery programmes is to address the problems of the 'second economy', dealing with income poverty, unemployment and social exclusion and hence the Expanded Public Works Programme.
To give expression to our commitment of improving service delivery both the shares for provincial and local government allocations increase significantly. Provincial allocation increases from 56,8% to 58,0% and the local government allocation from 4,4% to 4,6% over the MTEF whilst the national share decreases from 38,9% to 37,4% over the same period. Over half of the additional resources are allocated to the provinces, in recognition of the challenges they face in delivering social services, building and maintaining economic infrastructure, employment creation, promoting rural development and coping with HIV and AIDS. Local government, which must deal with the provision of free basic services and expand municipal infrastructure, also gets a larger slice of additional revenue than its baseline allocation.
These allocations alone are not the solution to the problem of years of dispossession and deprivation. Because the ANC is not only faced with the responsibility of delivering on its mandate of a better life for all but we are the motive forces ourselves. The most critical part is that of ensuring that reconstruction and development really takes place. Oversight therefore becomes critical for us as public representatives and that calls upon all of us to ensure that these government policies are implemented. Some of us tend to abdicate this responsibility because of our political persuasion and lack of commitment to this country and its people. The rightwing in this country has taken a decision that they will fight every effort of bringing about a better life for all and they continuously insult our people's integrity by asserting that life is now worse than pre democracy. Even as they tell the story of a bleak future, they cannot even convince themselves that the lie they are telling will one day be true. Our people know the truth.
It takes a lot of courage to tell a person who did not have a roof over his or her head who now does, that apartheid was better. For a pensioner who now earns R740, it is absurd in the extreme that life was better before, and to all recipients of social grants and indigent policies of the ANC government. Madame Speaker one must be insane to attempt to tell our people that they were better off without electricity and running water and decent access roads. It is a long audous road that requires a peoples contract to overcome and our people are taking the challenge already, taking advantage of the expanded public works programme, working for water projects and Zibambele in KwaZulu Natal. Whilst these are short-term measures, the skills acquired and the installation of infrastructure has long-term socio economic benefits.
Indeed there will be no major policy changes but an acceleration of the implementation of our programmes supported by the resources allocated through this process of the Division of Revenue.
The ANC Supports this Bill and we commend it to this house.