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While there is much in this Budget speech COPE cannot disagree with, this occasion can best be described as a missed opportunity. While the party welcomes the commitments to keep inflation targeting, leave the SARB mandate untouched and to emphasise the need for prudence, there is nothing in this speech that signals anything but a wish for unemployment, poverty and inequality to be dealt with. As the saying goes - if wishes were horses, beggars would ride.

There is nothing new in Ministers call for active engagement between Government, Business and Labour. The Ministers long term vision of 20 years to shape and implement economic policies is probably realistic, but there are immediate interventions that could be made. The only practical intervention against unemployment is the youth employment subsidy. This is welcome, but there is no detail on the interventions required to increase investment, to establish new sectors in the economy, such as green energy.

We welcome the lowering of the deficit figures to 4,1% of GDP. However COPE is concerned with regard to the high Government debt levels. The figure of 37% of GDP in 2010/11 (R526 Billion) peaking in 2012/13 at 43% (R1,3 Trillion) is far too high. To stabilise the debt levels only in 2015 is dangerous. COPE would like to see the stabilisation to be brought forward to 2013. The Treasury must start tomorrow with an aggressive top down approach to pinpoint all those inefficient programmes in the various departments and cut them out of the budget. We see a little bit of that in the announcement that government will combine forces with Minister Chabane's new Department to eliminate ineffective programmes in various departments. COPE will closely monitor this, and their performance will be judged after a year.

We would like to see a zero tolerance approach for poor public services. COPE further welcomes that the Minister has drawn the line about the inflation targeting levels. The whole debate on the South African Reserve Bank and the value of the Rand, has been unnecessary, just as has the one on nationalisation of the mines. Such mindless populism is fortunately absent from the Budget Speech, but not from the ruling party's politics.

COPE is not happy about the rise in the fuel levy. This, together with the rising electricity tariffs, makes energy too expensive. This will impact on inflation and hit the vulnerable poor hard.The spending of R52 Billion over a period of 3 years in the Expanded Public Works Programme to create 4,5 Million short term job opportunities could have been better spent in conjunction with business to create sustainable decent jobs. The Indian model, for example, where the Public Works Programme is utilised that guarantees all unemployed people work at the basic rate of pay to maintain infrastructure, build houses etc, is worth exploring. It is certainly a long term approach, where investment is made in the poorest of the poor.

It is clear that the ANC will not be able to fulfil their populist promises made to the electorate in 2009 with this budget. The Minister talked a good talk to appease the ANCYL, SACP and COSATU, but in the end has sensibly kept continuity with the previous governments core policies. This begs the question, which policy agenda will win out in the next Budget? This kind of uncertainty is simply not good for the country.