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"The aim of the National Treasury is to promote economic development, good governance, social progress and rising living standards through the accountable, economical, equitable and sustainable management for public finances. It inter alia promotes national government's fiscal policy framework and co-ordinates macro-economic policy. It exercise control over the implementation of the budget.

One of the outstanding features of the previous ANC administration was the strong performance of the economy. We had sustained growth over a 10-year period with strict fiscal and monetary policy that positioned us well to face the rigours of the present economic down -turn. The prudent fiscal approach has provided for sustained growth in public expenditure to cushion the economy and reinforce the safety net for the poor. We commend the former Minister of Finance, Trevor Manuel, as well as the former Commissioner of SARS, and present Finance Minister, Pravin Gordham for their work in this regard

The global economic crisis has hit a number of our productive sectors very hard, slowing growth and affecting jobs dramatically.

Clearly interventions are necessary within the private sector to counteract an excessive investment slowdown and unnecessary closures of production lines or plants.

The ACDP fully supports the NEDLAC agreement setting out the framework response (‘Framework for SA's response to the international crises). We note that government is using industrial financing and incentive instruments, and also encouraging development finance institutions to assist firms in distress.

The R787bn infrastructure expenditure remains a key fiscal stimulus to the economy. The ACDP agrees that we need to maximise industrial development by minimising imports and capacitating local engineering industries during this period.

We appreciate the countercyclical stance that has assisted us in dealing with the global financial crisis. However, we are extremely concerned at the revenue projections and that we are already R18 bn behind the targeted figure. Our GDP growth has again been revised downwards. With all the additional ministries as well as requested recapitalisations from SOE's (such as the R1.6bn for SAA) we will undoubtedly exceed the announced budget deficit of 3.8 % of GDP or R80BN??? If our debt service costs rise, this will mean that we have less money to spend on government programmes.

Earlier this year government debt was set to climb from 22.6 % of GDP to 27% of GDP by 2011, whereas in October's medium -term budget policy statement, it was set to fall to 19.9 % by 2011. Debt service costs need to be reduced - is aim being 2.2 % of GDP attainable in the current environment. Clearly far more belt tightening is required.

In view of this, there is urgency for government to recognise and address the problem of wasteful and ineffective spending. The ACDP is extremely concerned at the fact that there is insufficient control of foreign travel, advertising and PRO activities and consultancy services. Clearly there must be stricter oversight of the activities and executive remuneration in agencies and government enterprises.

We as MP's need to take up the challenge issued during the budget speech that we "should play a more active role in challenging accounting officers to plan their efficiency saving initiatives up front, and report regularly on progress. We agree with the former finance minister that "a greater sense of responsibility needs to permeate the ethos of government all the way through the accountability chain". We also need a thorough assessment of all government's programmes to see how we can improve value for money and identify areas where we can eliminate or reduce wastage. In this regard we look forward to the outcome of a comprehensive expenditure review - to ensure that as we spend more, we spend better.

To conclude, may we congratulate the Honourable Minister and Deputy Minister on their appointment and thank all the officials for their hard work and dedication during this difficult period.

The ACDP will support the vote".