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17 February 2010

MEDIA STATEMENT

THE RESPONSE TO THE BUDGET PRESENTED BY MINISTER OF FINANCE

CDE PRAVIN GORDAN

ON THE 17TH OF FEBRUARY 2010

South African National Civic Organisation welcomes the first budget of the Zuma Administration as presented by the Minister Hon. Pravin Gordhan. The tone that underpins the budget was revolutionary and developmental within the spirit of doing things differently. Even though the economy is not rosy, it looks as if it is in the good hands. We are convinced that this administration need to be given chance in order to be measured on its own budget and policies.

As a civic movement, we have noted the following bases of the budget speech;

  1. The importance of the people of South Africa.

  2. The need to do things differently.

  3. The structural economic challenges.

  4. The unprecedented levels of poverty and wage gap.

  5. Increasing scourge of HIV/AIDS.

  6. The poor state of our education and skills development.

  7. The state of our economy post the recession.

  8. The need for unity and common purpose for all South Africans.

The 2010 budget intends to chart a new growth path for our country to address the five priorities as outlined in the Manifesto and the State of the Nation Address. i.e;

  1. Youth absorption into industry through wage subsidy.

  2. Improve employment rates through economic growth.

  3. Sustain high levels of public and private investment.

  4. Improve performance and effectiveness of the state.

  5. Provision of quality education and skills training.

  6. Improve municipal infrastructure and general service delivery.

We applaud the increase in budgetary allocations to the more important sectors of service delivery. We believe that the Zuma Administration must be characterised by improvement in the lives of our ordinary people.

  1. R3 billion for people to be put on antiretroviral treatment.

  2. R2.7 billion for workbooks in all eleven languages and the intended testing of grades 3,6, and 9.

  3. R12 billion for skills training at FET transferred from provinces to national.

  4. R1.2 billion grant for rural development support of on- site water and sanitation infrastructure as part of rural housing programme.

  5. R6.7 billion for equitable share to cushion poor households against rising electricity and water tariffs.

  6. R2.5 billion for Municipal infrastructure grant to improve rollout of services.

  7. R52 billion for EPWP to continue with labour intensive infrastructure development hence short-term labour absorption strategy.

  8. Increase of old age and disability grant by R70.00 to R1080.00 to cushion inflationary pressure on our senior citizens.

  9. Increase of child support grant with R10.00 to R250.00 to cushion children in no income households.

  10. R846 billion public infrastructure investment to be undertaken for ESKOM energy, roads and water infrastructure projects.

We also welcome the steps that government intend to take to correct some of the ills that frustrate our economy and the administration. We hope that these steps will go a long way in enhancing the efficiency and value for money.

  1. Action on tax avoiding individuals and businesses.

  2. Conducting lifestyle audits to combat corruption and fraud.

  3. Review of the treatment of gambling winnings by SARS.

  4. Expand the considerations of the Reserve Bank in its monitoring of the inflation rate.

  5. Cooperation with the Minister of Cooperative Gorvernance and Traditional Affairs to improve financial management and service delivery.

  6. Cooperation with Minister Chabane to curb rocketing salaries, spending on frills, travel in luxury and marketing expenditures within public service and state owned enterprises.

  7. Recapitalisation of the Land Bank to fulfil its mandate.

  8. Curb higher salary increases in public sector to enhance more employment opportunities.

  9. Establishment of inter ministerial committee on corruption to coordinate government efforts to stamp out corruption.

We therefore need to join hands with government to ensure that the financial resources allocated are transformed into service delivery and ultimately a better life for our people. We will closely monitor the subsidies to companies for youth employment that they are not being abused as financial bailout. The banks should expect our eagles eye on the spending of government resources meant for subsidising middle income group to access home loans. The South African National Civic Organisation support this budget and intend to play a significant role in implementing it.

Issued by

The Presidency

L.B. Mashile

Deputy President (0825569010)

 

N.R. Bhengu

President (0785493553)

South African National Civic Organisation