ANC WELCOMES THE MEDIUM TERM BUDGET POLICY STATEMENT
The African National Congress is of the view that the Medium Term Budget Policy Statement tabled by the Minister of Finance Honorable Enoch Godongwane on Wednesday, 26th of October 2022, lays the basis for strengthening the delivery of services by replenishing baselines in front line departments such as health, education and police and the extension of the social relief of distress to March 2024 will help the most vulnerable people, families and households.
The ANC also acknowledge that this medium-term budget takes place in the most challenging of circumstances, in which the socioeconomic crisis has shaken everyone individually and collectively. Additionally, it is an environment in which the Russia-Ukraine conflict has negatively affected the global economy and in our country in particular it has negatively affected food security and energy prices raising the overall cost of living thus deepening poverty, hunger, inequality and insecurity.
This medium term budget:
- restores infrastructure allocation baselines, intervening to allocate additional resources for health, education and the police
- Reflects on the micro-economic reforms in network industries (such as energy, telecommunications and logistics) and how far these reforms are.
- provides an update on the support for State Owned Enteprises charged with providing critical services for a well-functioning economy.
- Makes an important point about the binding constraints of crime, energy security and the weak transnet logistics environment As the African National Congress we welcome the:
- Replenishing of budget baselines for the Law enforcement agencies, health and education
- The extension of the SRD for another year, ending March 2024
- Work done towards the resolution of the Eskom Debt
- The work done to help SANRAL with its balance sheet and the Partnership between National Government and the Gauteng Government in resolving the E-tolls funding model.
- The efforts made to help our SOEs particularly Transnet, ESKOM and SANRal.
The ANC believes that each budgetary allocation must help to build and revitalise the existing economic base, with a distinct aim to couple employment opportunities.
We also believe that each budgetary allocation must help to build and revitalise the existing economic base, with a distinct aim of creating employment opportunities to deal with the unemployment crisis especially for the youth. Furthermore, the budgetary interventions on our major SOEs will have a positive impact on our electricity challenges, rail challenges and infrastructure investments.
In our National Policy Conference we agreed to build on the following key pillars:
- Accelerating the implementation of the Economic Reconstruction and Recovery Plan to advance, amongst objectives, increased infrastructure investment, improved energy security, and wider access to improved data services.
- Expanding investment in infrastructure to improve community access to basic services, increase the overall efficiency and competitiveness of the economy and reignite South Africa’s job-intensive construction sector.
- Reforming of network industries, including electricity, telecoms, water, rail, and road infrastructure in order to improve the overall competitiveness and performance of the economy and to stimulate growth and job creation.
- Strengthening industrial policy interventions to support the growth and expansion of the manufacturing and services sectors.
- Expanding trade with other countries on the African continent and the rest of the world, as part of our agricultural, industrialisation and beneficiation strategies.
- Prioritising closer coordination between government and social partners, including through deepened processes of social compacting.
As the governing party, our number one economic priority is to accelerate the pace of economic growth and job creation. This priority must shape all macroeconomic and microeconomic policies. We are fully aware that it is only through a sustained period of economic growth that South Africa will be able to significantly reduce unemployment and improve the lives of our people.
ISSUED BY THE AFRICAN NATIONAL CONGRESS
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