The Independent Democrats (ID) Spokesperson on Finance, Lance Greyling MP, says the Medium Term Budget Policy Statement (MTBPS) is essentially a signalling exercise and unfortunately the signals being sent out should make us all a bit cautious.

As expected, the projections of growth over the next three years are slightly lower and as a result the deficit projections are higher. Coupled with this is the uncertainty regarding the future of the global economy and the risks regarding our major trading partners. The ID does however believe that the minister is sending out the right signals regarding the prioritisation of infrastructure investment over consumption.

Minister Pravin Gordhan has alluded to the ballooning wage bill in government a number of times and the ID believes that this is right to be raised as a caution. As to whether these increases can in fact be kept to 5% next year remains to be seen.

The extra cost for salary increases this year for public sector workers is approximately R 4.5 billion which we will also have to pay interest on, as it is borrowed money. We cannot have such a recurrence next year.

The ID is disappointed that the minister did not announce government’s position on the Youth Wage subsidy as it has been an on-going debate. We have been waiting for finality and hoping for a plan of implementation today.

The ID is further disappointed that the minister has still not given an indication of the implementation costs of the National Health Insurance (NHI). We believe that we urgently need to see the costing estimates for the NHI before we can have a proper debate as to how it is implemented. The minister has stated that extensive consultation will take place in 2012; however, the debate is raging now and we need to see costing estimates.

In terms of appropriations, the ID welcomes the R 208 million for Acid Mine Drainage and the extra R10 million for the Public Protector. This needs to be added not as a once-off payment but rather as a recurring budget expenditure.

The ID further welcomes the additional support for bulk infrastructure and solid waste management in rural municipalities.