aAppropriations Bill: Urgent need to shift from funding for survival to funding for growth

25 July 2024

Madam Speaker,

Honourable Members,

Bagaetsho, Dumelang

Today we table the Appropriations Bill before this House for debate. 

I count it a great privilege to chair this committee and remain grateful to the committee and members of the team for their support.

Arguably the most important piece of legislation Parliament considers, the Appropriation Bill proposes to appropriate money from the National Revenue Fund for the requirements of the State and to prescribe conditions for the spending of funds withdrawn.

The Standing Committee on Appropriations is legally responsible for the consideration of the Appropriation Bill, and to report on it to the National Assembly. It is then this House’s responsibility to ensure that once budgets are allocated and transferred to the various departments, the spending and implementation of policy is monitored and overseen so that the people’s money is spent prudently and honestly.

I wish to appeal to Parliament to note relent in our role to closely monitor annual reports, annual performance plans and spending patterns to protect South Africans investment in government

This year, the Bill proposes a total appropriation by vote of R1.1 trillion in 2024/25 financial year. Total direct charges against the National Revenue Fund amounts to R1 trillion in 2024/25 financial year. All in all, total estimates of national expenditure amounts to R2.1 trillion for the 2024/25 financial year.

The largest single line items include social development, police, health, education, cooperative governance and transport. These coalface service delivery departments are well funded in this bill, and provide for the weighty socio-economic needs of South Africa.

However, it is our duty to warn this Parliament and the people of South Africa of the tight fiscal role we are walking on as a country, balancing the triple demands of social wages, increasing taxes and debt servicing costs.

For every R100 rand of money spent by government, R60 of it goes to the social wage, and R16 goes to paying off national debt. There is little wiggle room. While young people remain unemployed and miseducated, the funding available to unlock growth and potential shrinks each year.

If we are to turn the ship around, the Minister of Finance needs to begin working towards next year’s budget to “fund for growth”. The Standing Committee on Appropriations appeals to the Minister to begin this in earnest, and we will support him every step of the way.

What we cannot do is to social wage spend ourselves to prosperity and growth. 60% of the national budget is directed to spending on health, education, and social protection. This is unsustainable.

What we cannot do is to tax our way to prosperity and growth. With economic growth averaging just 1% for the past decade, wealth and value are depreciating while the cost of living and doing business is on the rise. Taxpayers cannot be squeezed any further. This is unsustainable.

And what we cannot do is borrow our way to prosperity and growth. Debt servicing costs will reach R440.2 billion in 2026/27. This too, is unsustainable.

Therefore, funding for growth requires a focus on the economy, education and the environment.

Until then, the Appropriations Bill before Parliament today will keep the ship afloat. But the hard work then begins to change government’s approach from funding for survival to funding for growth.

That is when we’ll begin to unleash the latent potential of South Africa and provide jobs, quality services and dignity to all 61 million citizens.

Issued by Mmusi Maimane, BOSA leader, 25 July 2024