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DA: Boitumelo Babuseng: Address by DA Provincial spokesperson for Economic Affairs, during a sitting on Treasury budget debate, Northern Cape Provincial Legislature (24/05/2016)

DA: Boitumelo Babuseng: Address by DA Provincial spokesperson for Economic Affairs, during a sitting on Treasury budget debate, Northern Cape Provincial Legislature (24/05/2016)

25th May 2016

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Since the appointment of the current Member of the Executive Council for Finance, Economic Development and Tourism, it is as though there has been a breath of fresh air in the Northern Cape Provincial Treasury. The emphasis that the MEC for Finance places on good, clean governance is a refreshing change of pace from the conduct of the previous incumbent and it bodes well for financial management in the province overall.

The Democratic Alliance will support and strengthen anyone who takes realistic action to address the challenges of constrained economic growth in our province.  Without economic growth and good governance, there can be no sustained creation of decent economic opportunities – and without the freedom to earn a living in the manner of one’s choosing, people are denied their essential economic freedoms.

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There can be no doubt that the current fiscal climate in the country places the province at great socio-economic and political risk. Economic growth is needed to ensure that economic opportunities can be created at a sustained pace. Currently, one in three people in South Africa cannot find work. To borrow a phrase from the federal leader of the Democratic Alliance, Mmusi Maimane, the lack of job-creating economic growth is a “supercrisis” which demands bold action from an accountable government which creates economic opportunities for all its people freely and fairly.

Much has been said and will still be said about the global economic factors which constrains economic growth, but very little is being said about the factors which are in government’s control. If one looks at the facts, any contention that dismal economic performance in the country results from external pressures alone cannot be taken seriously. We are heading for a ratings downgrade, for example, while other developing and emerging economies facing the same external pressures are flourishing.

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The Democratic Alliance believes, however, that the current Member of the Executive Council for Finance, Economic Development & Tourism can lead Treasury in tackling these challenges. Factors which are within our control must be dealt with decisively to ensure that our people enjoy economic freedom – and we have faith that the current MEC with his emphasis on good governance can achieve these goals. As has been said before, there are still some good people in the ANC and the MEC is one of them.

In delivering on its mandate, the Northern Cape Provincial Treasury can and must do more to ensure that an environment conducive for job-creation economic growth is created. The budget must be used as a tool to deliver economic growth and opportunity to our people.

Treasury plays a key role in ensuring the level of financial accountability and transparency that the Democratic Alliance expects from government. As mandated by section 18 of the Public Finance Management Act, Treasury must prepare and control the provincial budget as well as promote effective management of provincial resources.

Efficient control over provincial resources is crucial in light of the budget cuts and cost containment measures which are needed in our constrained fiscal environment.

While the Democratic Alliance applauds the spirit of savings and good clean governance which has been highlighted in the Provincial Budget Speech by the Member of the Executive Council for Finance, it remains a cause for concern that very little detail is being given on how cost containment strategies will actually be implemented. As can be seen in departmental budget speeches, some departments appear to be reducing spending on core competencies while maintaining extravagant expenditure on non-essential items. One example which is close to home for the MEC for Finance is the reduction in spending on the Economic Growth and Development Fund by the Department of Economic Development & Tourism. The Fund is meant to serve as the main empowerment vehicle for SME development, which is one of the department’s critical outcomes – yet support to SMEs is being cut.

We urge Treasury to perform its monitoring, evaluation and oversight functions diligently to ensure that can address the challenges of constrained economic growth.

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