SPEECH BY MNGUNI DURING A NATIONAL TREASURY BUDGET VOTE NO 8

Programme 1: Administration

• Madam Speaker, the outstanding work done by the department despite a high vacancy rate is highly commendable. The Finance Committee was informed that there are 365 vacancies, including three at deputy director level. The department is facing a challengf attracting people with suitable skills and has to resort to head hunting. However, Madam Speaker, the department does not compromise on delivery. We are one of the best performing economies of developing countries in the world. This is testimony to the hard work the Minister and his staff is doing and a commitment for a better life for all people of South Africa irrespective of colour or creed.
• MOU of understanding between the SARB and NT is the step in the right direction towards cooperation between the two institutions, for effective financial regulation and other policy position taken by government for effective implementation of policies t will enhance the success and the implementation of the people's contract to fight unemployment and poverty.

Programme 2: Economic Planning and Budget Management

• Sound economic policy positions taken by the department has led to the macroeconomic and financial stability that has seen economic growth of 3,2% in the first quarter of this year, and the economy that is resilient to global market forces which might e had a negative impact to the country's economy, thus exacerbating the levels of unemployment and poverty.
• Government will and must always intervene where market forces fail to bring about a better life to the majority of the poor. None privatisation of some SOE should not be seen as government reneging from the restructuring programme of these assets but, is a leverage through which the state can bring on board the man on the street into the main stream of the economy. Not withstanding the fact that the IMF sees this as the meddling of the state in the economy, itself does not does not have the solution to the challenges of unemployment and poverty facing our country.

The mandate of the people calls for the development of the second economy without us being apologetic about it. It is only in the interests of the of the capitalists to amass wealth at the expense of the majority, the unskilled and the poor to loose their jobs through free market economy. Thus the government cannot allow that market failures impede the implementation of the contract endorsed by the overwhelming majority of the people.

• We are aware of the challenges facing the NT as it is grappling with the budget reform process. This is an endeavour by the department to bring about the "peoples budget" that will have sound and clear measurable objectives that will enable them to linervice delivery with the department's plans and quality measurable strategic objectives and the improvement of their lives after a decade of democracy, equality and justice.
• Madam Speaker, this is also the reason why the department has made a firm commitment to improve the reporting on the budgets of state-owned enterprises to enable Parliament to exercise effective oversight of them.
• The Minister is the sole "Trustee" for the Government Employees Pension Fund. This is an unhealthy situation that has been created by stakeholders themselves. The committee has been informed that the board of trustees will be in place soon. However, weuld like to call on NEDLAC to expedite the process and appeal on other stakeholders to alleviate the Minister of this "unfounded" mandate.
• As we celebrate a decade of democracy and freedom, let us not that our former liberation army comrades who's livelihood depends solely on the Special Pension they receive from the State. Much progress has been done to alleviate their plight and a betteackage has already been approved by the Finance Committee. Nevertheless Madam Speaker, I still would like to register their anger, when they remember those days in the trenches, their fear of dying from diseases and starvation, and lastly their hope that the Special Pensions Act will be attended to with the urgency it deserves.
• In line with the President's announcement to strengthen local government finances, the MFMA will be implemented as from the 1st of July this. This will ensure that there is proper financial accounting. Sixty four special advisors from all over the worlere seconded to municipalities as a pilot project to put financial systems and MFMA into place. An amount of R198,0 million has been set aside for the implementation of this act. The depart has undertaken to report to the committee about the progress of this pilot project.
• As we celebrate ten years of democracy, National Treasury is replacing outdated financial management systems with PFMA and GAAB compatible systems. This will also enable the intergovernmental relations division to improve cash flow and coordination of grammes in the provinces.
• The management of domestic and foreign debt is highly commendable. The department has managed to restrain budget deficeit to 3.1% of GDP besides the expansionary fiscal policy stance it has adopted and more than fourteen billion rand personal income taut over the past ten years.
• The level of proffesionalism in the National Treasury and the confidence it has earned globally led to the over-subscription of the R150 bond in global markets. Domestically, the interest shown to the launch of the retail bond speaks volume about the cidence the public has on the government and the economy in general. All this would not have been possible without dedication, hard work and most importantly, visionary leadership within the ANC.