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Provincial Budget 2001/02
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Speeches and Media Release
 Provincial Treasury, Economic Affairs, Environment & Tourism

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EASTERN CAPE PROVINCIAL GOVERNMENT
 PROVINCIAL BUDGET SPEECH 2001/02
 BY  MEC GODONGWANA
 2 MARCH 2001



1. Introduction

Honourable Speaker and the Premier;
 Distinguished members of our Provincial Legislature;
 Invited guests
 Ladies and Gentlemen;

"To be in hell is to drift; to be in heaven is to steer."
 GB Shaw; Man and Superman

The past few years have demonstrated that without vision, planning, well co-ordinated and targeted effort, there can neither be a lasting 
impact on the historic conditions we find ourselves in nor any real and concrete development and economic progress. Budget must therefore 
be a product of a conscious effort of detailed reflection and planning if it is to contribute to the overriding agenda of transforming the 
South African society.

This budget seeks to add another brick in the process of addressing our political, social and economic history, which has been 
characterized by divisions and inequality. The bridging of these divisions, the reallocation of resources in a manner that addresses our 
peoples aspirations and the building of a province that is economically competitive, are the imperatives that drive our program.

Mr. Speaker, today we are tabling the second budget after the second national democratic elections in 1999. This budget further affirms our 
commitment to fight poverty, fundamentally transform the socio-economic conditions in our Province and advance the programme we started 
after 1999 elections and further propel us in the economic and development path we adopted in 1994.

More specifically, this budget is being presented against the backdrop of a long and painful period of economic stabilization and fiscal 
discipline, and in a more general macro-economic context of adaptations and adjustments that holds out the promise of placing the province 
on a higher, more labour absorbing and competitive growth path.

As such, this budget needs to be understood as a sincere attempt to advance the provincial economy beyond the constraints of stabilization 
without necessarily lapsing back into conditions of financial instability.

The local government elections held on December 5 last year and the current programme for restructuring municipalities in our Province 
represent, not only an important chapter in the democratization of the South African society, but also a major challenge for the 
consolidation of our multi-level planning and decision making. Local government is to play a critical role in the delivery of services to 
our communities and therefore by implication, a critical role in the process of empowering our people and changing the material conditions 
obtaining in the Eastern Cape.

A context has already been created for this budget in three important statements, namely:

* The State of Nation address by the President;
* The Budget Speech by the Minister of Finance; and
* Premiers Opening of Legislature Speech.

Viewed collectively, what emerges as of strategic relevance to the Eastern Cape Province, is the need to consolidate and enhance the 
delivery of basic needs on a larger scale and with greater impact.

The above objective will remain elusive, if it does not unfold in a manner that systematically removes structural and institutional 
bottlenecks that hinder the emergence of a more integrated economic structure, better functioning markets and a more equitable distribution 
of output.

In addition to existing initiatives that include:

* Rural Development Strategy and Urban Renewal Program;
* Coega Industrial Development Zone;
* Wild Coast SDI;
* Local Government Restructuring;

the province needs to strategically explore the possibility of:

* Creating new platforms of growth and development. :
* Human Resource Development, tapping on the National Skills Development Fund;
* Provincial Public Transport Strategy to improve the competitiveness of our logistics;
* The potential of enhancing the use of domestic / provincial savings for provincial investments;
* Strengthening linkages between financial capital and institutions, manufacturing establishments and labour, on the basis of a 
collectively agreed economic and development path for the province.

It is in essence managing the multiple and complex variables that impact, not only on allocation of resources, but also on the availability 
of resources and laying basis for an important shift towards an increasing emphasis on growth and development that this budget attempts to 
achieve.

2. Review of the 2000/01 Financial Year

It is critical that we begin by briefly outlining the strategic tasks we set ourselves in the 2000/1 budget and evaluate the extent to 
which we have been able to meet those targets. You would recall that we summarised the key strategic tasks confronting us as follows:

* To eliminate the huge debts and reduce the crippling deficit and to put in place tight cost reduction measures, improving financial 
management systems and capabilities;
* Enhancing service delivery and promoting socio-economic development;
* A greater shift in emphasis towards prioritization of targeted expenditure e.g. capital infrastructure projects, HIV/Aids etc.

What then is our record of performance?

With regards to the reduction of the debt, the following was achieved:

* Our debt burden has been eliminated over the past three years. You will recall that during the year 98/99 our debt stood at a staggering 
figure of over R2 billion, today it stands at almost zero. A concomitant result of this is that more funds are available for other 
projects, in particular social services delivery and capital infrastructure projects. Further, our debt management strategy has gone a 
considerable extent in improving our relations with service providers and in stimulating economic activity within the province.

With regards to improving financial management systems and capabilities, the following was achieved:

* An electronic payment of accounts system has been fully operationalised. This has effectively reduced possibilities of fraud and 
corruption in the system. It has also drastically reduced payments by cheques to no more than 2% of our total payments. We will continue 
with our efficiency on this item whilst we remain considerate of special cases that warrant extraordinary interventions.
* An electronic Financial Information System (eFIS) is being rolled out in some of our departments. This system will enable departments to 
start and complete the expenditure cycle themselves. Three positive spin-offs from this will be the reduction in the time of processing and 
paying for services rendered; enable better accounting and a clear audit trail; and lastly this will enable the decentralization of Pre-
Audit to be undertaken.
* The closing of books of prior years is to be completed before the end of April 2001. This will enable both the Oversight Committees and 
the Auditor-General to have a definite opinion on how departments have been managing their finances.
* The International Monetary Funds Government Finance Statistics (GFS) classification standards are used in the packaging and presentation 
of our budget documentation. This is in line with the National Treasury regulations. These standards are generally internationally accepted 
and they facilitate cross-country comparisons of budget information. More fundamental for our case, these changes in the budget 
documentation format are also aimed at setting up the framework within which to link planning, budgeting and service delivery. This has 
made a significant improvement in the breadth and quality of information included in our document as you may see for yourselves.
* The Forensic Audit Unit continues to detect and prevent some fraudulent transactions taking place. The good cooperation between this unit 
and the investigative agencies within the province is aptly demonstrated by the significant victories in the fight against corruption in 
the Welfare Department and cracking syndicates operating in various departments. We shall continue giving no quarter to thugs and thieves 
who seek to appropriate funds and other resources meant for the public good for their own selfish interests.

With regards to the overall budget, the following has been achieved:

* The integration of planning and budgeting has been fostered. All departments went through planning sessions where various levels of 
managers and officials participated in the planning and budget allocation exercise among departmental programs. This is reflected in the 
main budget document, which provides detailed information of the key performance areas that each program will pursue. In effect, past 
expenditure is no longer the only basis for the budgeting process. This budget is part of the national framework of priority setting and 
resource allocation. At a provincial level, substantive dialogue has been entered into between Treasury and line departments on expenditure 
pressures and patterns. This budget submission therefore reflects collective agreement on provincial priority and allocation issues.

With regards to service delivery and infrastructure projects, the following is a summary of key projects already in advanced state of 
implementation:

* R 55m for school renovation programme (currently 110 schools across the province are being rehabilitated);
* R 19m for dipping materials for livestock;
* R 103m for roads infrastructure, in addition R 90m for flood damaged infrastructure;
* R 7,5m for Fresh Produce Market in Umtata;
* R 10m for renovations of provincial nature reserves;
* Renovations of clinics.

Through these projects, we have been able to give concrete expression to our intention of focusing resources on rural development and 
improving service delivery. These projects should not, however, be seen as a compendium of unrelated inputs, they form part of an 
integrated programme co-ordinated and managed by the various departments in our Provincial administration. They also are part of the 
effectiveness of our cluster approach to planning, project implementation and management, which was referred to by the Premier.

Even in the arena of revenue collection, some advances were made:

* Last year we indicated that our departments were experiencing problems in collecting the portion of revenue that they are responsible 
for. Accordingly, we conservatively revised our collection projections to accommodate many factors ranging from poor billing systems and 
lower tariffs. This time around we can report that our own collected revenue will exceed our estimates by about 37%. This is an indication 
that our systems and performance has generally improved. In continuing towards this path we will establish revenue collection structures in 
some of our departments and generally decentralize related functions from the Treasury. With your permission Mr. Speaker, I should also 
take this opportunity to congratulate the management and officials of the Department of Transport for having continuously exceeded in 
collecting the revenue portion assigned to them amidst trying circumstances. May others emulate their commitment and good example!

Honourable Members, these achievements and those outlined before by the Premier, demonstrate our resolve in making this government work in 
a manner consistent with the objectives of the National Economic and Development Strategy. We remain steadfast in our commitment to bring 
about A BETTER LIFE FOR ALL.

3. Challenges for 2001/02

Honourable Members, In August last year, an Eastern Cape Provincial Budget Indibano was held in East London. Its objectives were to:

* Collectively appraise the resource allocation mechanism of the province,
* To set in place a process of aligning resource allocation with the strategic plan of the province,
* To develop a framework for budget prioritization and targeted expenditure and
* To create a broader understanding, participation and buy-in by all managers in the manner in which budget allocations are made.

The Budget Indibano had resolved, among other things, that during this financial year, there would be a greater need for integration of 
service delivery programs at government level and also with public institutions. Various departments will thus adopt a clear bias towards 
the four provincial priorities over and above other activities. These priorities are:

* Integrated Rural Development
* Social Welfare Services Improvement
* Transformation of Government Machinery
* HIV/Aids programs

3.1. Integrated Rural Development

The Eastern Cape has enormous potential, but is suffering in two key respects: a failure to meet basic socio-economic needs and economic 
stagnation in key industries, i.e. agriculture, forestry and tourism. The challenge of a rural development strategy is to solve both 
problems simultaneously through the improved integration of production and consumption, although this is a somewhat complex and onerous 
task.

A rural development strategy needs to harness and focus resources in such a way that links can be made between developmental goals and a 
restructured economy. This will necessitate resuscitating the labour-intensive agricultural sector, enhancing linkages with a diversified 
manufacturing sector ensuring spin-offs and a support-infrastructure for the growing SMME sector. The strategic focus of our rural 
development programme would be:

* Enhancing rural incomes through revitalisation of economic activities in critical sectors like agriculture, forestry and tourism;
* Continuing with the rural infrastructure programme; and
* Fast-tracking the land reform programme.

Linked to the above, is a geographic focus on specific areas for the implementation of our integrated rural development strategy. The 
priority nodal points include O.R. Tambo, Khahlamba, Chris Hani and EG Kei District Municipalities. You would also note that these areas 
have also been identified by the national government for focused activity. National government has already committed R 20m for kick-
starting the implementation of this integrated rural development programme in the prioritised areas.

Substantial allocations for the implementation of key infrastructure projects in the targeted areas has been set aside:

Programme        2001/02         For Next MTEF Years
Roads: New Works and Maintenance         R 373m  R 1.99 bn
Schools: Construction, Refurbishments and Maintenance    R 248m  R 808m
Hospitals/Clinics: Upgrading, New & Maintenance of health facilities     R 238m  R 778m
Total    R 859m  R3.58 bn

3.2. Social Welfare Services Improvement

During this coming financial year, the provincial government wants to deal with the problems of social welfare once and for all. We want to 
provide quality service to adults and the disabled. We want to pay the right people the correct amount, at the right place and at the right 
time. All processes in respect to registration and applications should be addressed timeously. The Department of Welfare, which has been 
assisted by the Social Needs Cluster, has a plan to put in place a provincial social grant system that is free of corruption.

The key project will be the outsourcing of the social welfare grants payment function so that the department can concentrate on other 
developmental welfare issues. We are therefore seeking a partnership that would exploit the infrastructure, skills and expertise in the 
private sector and ensure that there is better management of the grant payments.

Another critical area is surely going to be poverty alleviation. This is critical for the Eastern Cape because most of our towns fall in 
the category of &#145;poorest towns in the country according to Statistics South Africas &#145;Measuring poverty in SA report.

Our intervention must of necessity involve two elements:

* A focus on improving incomes through facilitation, promotion and stimulation of economic activities in all sectors of the economy that 
demonstrate a potential. Surely high-value agriculture is one of those. Hence the non-personnel budget in agriculture has been increased by 
over 50% to R 101m.
* Secondly, continue with the "safety net" approach ensuring that we increase social services to some of the poorest areas.

In addition to the amounts reflected later, social security will be increased by 15% up to R4,253 billion. In total, social welfare 
services will increase by 13% to R 4,626 billion in order to deal with current problems once and for all.

3.3. Transformation and Development of the Public Service

As said above, during the coming period we will make an earnest review of our service delivery mechanisms. Part of this will be the 
improvement in the oversight functions in partnership with the Legislature.

In taking all these measures, the Batho Pele principles will permeate throughout all our agencies. As the Premier would say, the poorest of 
our people are the key constituency of this government and they stand to benefit most in the efficiency of our services. All then should be 
the ears and eyes of the government, the foot soldiers who ensure that government services do meet their expectations.

Another thorny area in the debate about public sector reform in South Africa has been the issue of the size of the public sector. Due to 
historical factors, the Eastern Cape is the most affected area. Whilst mindful of the fact that public sector, in general, is a labour-
intensive industry, concerns about the size of the public service are not misplaced. One factor that complicates the situation in the 
Eastern Cape is the question of skills mismatch, which meant that whilst numbers are big, appropriate skills for the tasks at hand are few. 
Over the last few years, we pursued a policy of containment, meaning that we strove to maintain the numbers as they are; allowing for no 
increase and freezing of posts. In a sense, that has been helpful in preventing possibilities for an unbridled growth of the public sector. 
As a result, we have achieved 3% decrease in personnel expenditure in this Budget. However, this is not sufficient in dealing with the 
problem. In this financial year, we are adopting a three-track approach, which entails:

* A managed process of bringing in critical skills from outside of the system in order to enhance delivery capacity. In this regard, we 
will be looking in each department for essential professional skills to render the department effective in performing its assigned tasks. 
For example, in the Health department, in an attempt to address capacity and budget management issues, we will be employing qualified CEOs 
in selected provincial hospitals. In the area of improving financial management capacity in departments, a contract has been entered into 
with a consortium of three firms to second skilled personnel on a contractual basis to assist departments in the capacity of Chief 
Financial Officers. For this financial year, we will spend R 210.5m for critical posts. Perhaps we must emphasize that this is not a random 
intervention, priority will be given to specific areas e.g. health, financial management, maths teachers etc. For 2002/3, R 150m will be 
spent in this area.
* An integrated and focused skills development programme would be implemented to ensure that we broaden the existing skills base in the 
system as well develop new skills within the system. The following are worth mentioning:

* The skills levy that goes up from % to 1% of payroll would generate over R100m, which could be effectively used for this purpose.
* A special bursary fund for students and employees has been set up, focusing on developing skills in strategic and target sectors 
particularly in those areas where we suffer severe shortages. An amount of R 50m will be placed and co-ordinated by the Office of the 
Premier.

* And finally, we would engage national on the broader debate about the size of the public sector. This is critical because we believe that 
this is a matter that requires direct intervention of national.

The programme for public sector restructuring has also been complicated by the current programme for the restructuring of local government. 
It places a challenge for improving service delivery capacity of municipalities because they are primary delivery instruments within the 
broad architecture of public sector in South Africa.

Just to emphasize:

Programme        Figures
Human Resource:
Essential professional staff put in all depts.   R 210.5m
Health Management Systems: An amount of R 70m has been set aside to turn around management systems in the Health Head Office and also in 10 
prioritised hospitals    R 70m



3.4. HIV/Aids Programs

HIV/Aids is yet another major challenge that we have to deal with, first as a provincial government but also as all sectors of society. 
Evidence shows already that the epidemic is spreading at an alarming rate and is affecting mainly the most productive sectors of our 
communities. It therefore is not only a medical problem but it also poses fundamental developmental challenges.

At an economic front, it is already apparent that many companies are beginning to feel the impact of Aids through losses in skills and 
experience, frequent and longer periods of worker absenteeism, as well as ever-decreasing returns on training investments. In conditions of 
under development and poverty, the disastrous effects of HIV/Aids will be more brutal. Related to this is the ever-increasing spending on 
household health care. It is already estimated that an average of between 30%-50% of annual household income is already being spent on 
health costs. This is surely more for those without medical aid facilities. The implication of this is that it is likely to increase the 
financial and resource burden on the state, since it has to provide the services required.

It is therefore no accident that, as government, we have to increase our focus on HIV/Aids, not as an isolated intervention but as part of 
our overall development programmes. In addition, there is an urgent need to address the lack of information on the prevalence of HIV/Aids 
in South Africa. There is a need for a study to map the effects of the HIV/Aids epidemic in the various communities. For us, the challenge 
is two-fold:

* Firstly, we need to realise that the public sector as work environment has staff that continue to face the risk of contamination and 
therefore need to have internal programmes that address the problem of HIV/Aids. These could include, but are not restricted to the 
following:

* Promotion of Awareness on HIV, STDs and other related conditions
* Condom distribution
* Management of STDs
* Counselling and testing
* Provision of safe First Aid
* Control of work organisation or environmental factors that increase the risk of Aids.

* Secondly, we must take the lead in the broader fight against HIV/Aids. This explains why we must use the resources at our disposal 
strategically and in a manner that attracts other sectors of society to join hands with us in the fight against HIV/Aids.

To bolster this focus, the following allocations are made:

Programmes       2001/2
Health   R 3.85m + R33m = R 36.85m
Welfare  R 1.50m
Education        R 11.75m
Total    R 50.10m

A mechanism will be worked out to make sure that all communities benefit from these programmes.

4. Sources of Revenue

Another area that requires a quick appraisal is the question of what our sources of revenue are and their inter-play in the budget process. 
The main budget provides for total revenue of R19,68 billion in 2001/02, that increases to R22,43 billion in 2002/03. There is a limited 
contingency reserve to allow for future uncertainty and unforeseeable expenditure of R140m in 2001/02.

There are three sources of provincial revenue namely:

* An Equitable Share of national-raised revenue,
* Conditional grants; and
* Own revenue.

The Equitable Share is determined through the National Treasury formula that presently allocates between 78% and 85% of total expenditure 
to Education, Welfare and Health. This renders social expenditure a great proportion of the provincial expenditure. The remainder of the 
provincial revenue pool is made out of four components, namely:

* A Basic component, which is 7% of the total equitable share;
* An Economic activity component which is 8%;
* A Backlogs component which is 3%; and
* An Institutional component of 5%.

The Financial and Fiscal Commission has proposed a change in the current formula for the vertical and horizontal split to what is called 
the Costed Norms Approach. Both the Budget Council and the National Cabinet have not approved a departure from the current formula. The 
Costed Norms Approach is a formula-based method for calculating the financial resources for the provision of basic social services levels, 
given nationally mandated norms and standards.

Conditional grants refer to allocations of money from national departments to the province, subject to certain conditionalities. These are 
generally earmarked for specific programmes. Conditional grants constitute R 1,420 billion of the budget we table today. Most grants have 
been adjusted upwards to ensure that their value is not eroded by inflation. Others have been kept constant, in particular, the Integrated 
Nutrition Programme. There is pending policy reviews and the need to address under-spending on a number of larger grants.

The 3rd source is own revenue, currently estimated at R 290m, which is equivalent to 1.5% of total revenue. The national average is 3.5% of 
total national revenue. Notwithstanding the improvements referred to earlier, there is clearly under performance in revenue collection, if 
one considers our potential. It is important therefore that we should optimize revenue collection. As already indicated, there is a process 
underway, in the rolling out of the PFMA, to set up revenue collection structures with appropriate staffing in affected departments. This 
will be accentuated by a programme of strengthening systems and collection capacity within the Provincial government.

The Provincial Tax Regulation Bill will enhance fiscal capacity of provinces and increase own revenue. We have established a committee made 
up of academics and private sector to look at legal, economic and other aspects of provincial tax powers within this new regulatory 
framework. These powers will be supported by effective processes for administration, collection and monitoring.

The provincial borrowing for capital projects to be phased-in over the MTEF will provide us with another financial instrument to improve 
our infrastructure and strengthen our infrastructure development initiative.

All the above matters will be investigated, proposal developed and implemented during the course of the financial year.

5. Budget Process and the Challenge of Integration

Before getting into the details of the actual allocations per department, perhaps it is fitting to make a couple of points on the actual 
budget process. Firstly, whilst Treasury is the driver of the process, it is essentially a collective process that seeks to co-ordinate 
priorities of various departments and integrate them into a coherent programme whose overall objective must reflect the overall development 
agenda of the Provincial Government and how the various components relate to it. Apart from individual planning processes in departments, 
we have also taken the formal position that annually there will be a Budget Indibano whose sole purpose will be to give the political 
leadership and management of the Province an opportunity to jointly review strategic policy issues and direction of the Province. The forum 
is also meant to look at long-term problems and shift the Province away from reactive crisis management mode and thereby define the 
development trajectory we are taking.

The second relevant point is the question of the absorptive capacity of the Provincial Government. It is important that within the Budget 
process, we identify areas in which departments will not be able to deliver in order to avert a situation in which allocated resources are 
not used as planned. Part of this endeavour, is to ensure that we plan and make our projections based on reliable data. Under-spending and 
over-spending, apart from being caused by poor financial management, are also directly related to the tendency for departments to work with 
databases with poor integrity. This, I hope, is an issue we must attempt to address in the course of the coming financial year.

The third related issue is the integration of "external" resources into provincial targets. It is clear that a lot of resources flow from 
donor agencies, national line departments, national parastatals and possibly other development initiatives of NGOs. It is our considered 
opinion that we must improve synergy between the activities of these agencies and what government is doing or planning to do at a 
provincial level. Duplication can only lead to waste and reduction of development impact.

Fourthly, is the issue of the turn-around time for the implementation of projects. We are seriously looking at improving the turn-around 
time on projects in order to ensure that the milestones reflected in our programme plans and the budget are implemented timeously met.

Lastly, the local government equitable share has to be properly planned for, in a manner congruent to provincial priorities. The Municipal 
Finance Management Bill tries to deal with this situation by creating room for Provincial Treasury to play a role in budgeting, planning, 
budget monitoring and generally setting a similar framework as that of the PFMA for municipalities.

This, together with the restructuring of provincial departments, should make for better planning and budgeting. In this context, the most 
urgent challenge is building the planning and financial management capacity of municipalities.

6. Expenditure Proposals

May I present to the House, the following Allocations:



Department      2001/02 Allocation R/Million
Office of the Premier    111.052
Legislature      68.902
Health   3,835.187
Welfare  4,626.754
Public Works     951.350
Education        7,824.746
Housing  858.642
Agriculture      468.261
Economic Affairs         248.816
Transport        243.317
Finance  113.936
Sports   176.794
Safety   7.997
Treasury Reserve         140.010
TOTAL    19,675.764



To complete the picture, let me briefly reflect on the overall budget and make a few comments on its focus.

* You would note that there is a definite increase in this years budget. This is true for all departments except Finance
* The size of the Premiers Office budget and Finance Department are consistent with our view that co-ordinating and regulatory departments 
should be constituted as smaller, highly capacitated and effective machineries rather than being bogged down in managing huge structures. 
This will enable that these structures are able to add value to the activities of other departments as well as create an effective context 
for regulation and planning. We hope that this trend will continue in line with the PFMA.
* Given the fact that the debt and overdraft problems have been overcome, a shift in the composition of expenditure, with more resources 
being released for delivery, is effected.
* Also important to note is the greater focus on capital infrastructure. The need in this area is substantial. Maintaining the existing 
asset base, replacing ageing infrastructure and meeting the needs of a changing population, all require capital spending. Infrastructure 
also supports economic activity in the Province. We expect to spend about R 859m in the 2001/02 financial year and reach R 1.362 billion in 
2002/03. In 2002/03, we forecast to spend more than R 880m on roads alone. This means that R 3,58 billion will be spent over the next three 
years. Achieving these targets will depend on a number of issues including, amongst others, proper plans and timeous submissions of the 
plans to National Treasury. Through the infrastructure programme, government will be able to further contribute directly to job creation 
and local economic development.
* With regards to social services, the increase reflected is aimed at consolidating the gains that we made to-date and also strengthen the 
delivery capacity in these areas of critical need.
* With regards to Economic Affairs, the increase is mainly to cater for the provincial contribution to the Coega Project.

We have no doubt that if these resources are efficiently utilized, we will be able to make a lasting impact on the situation in our 
Province. This places a major burden on all managers within the Provincial Administration to appreciate the policy prerogatives we are 
setting and to adhere to the provisions of the PFMA. Whilst efforts are being made to support and improve understanding within the 
administration of PFMA, it is imperative that we make a point that those managers who do not adhere to the PFMA will have to face the grave 
consequences of such transgression.

7.Conclusion

In conclusion, let me point out that throughout our tenure in government, we have been consistent in emphasizing that the problems that 
confront us are both complex and enormous though not insurmountable. In the process of attempting to address the challenges facing the 
Province, we certainly have areas in which our performance has been sterling. However, we cannot deny that in some areas we have not 
performed to our expectations. But if there is any overriding feature of the past few years, it is the fact that we have been able to learn 
and in the process mature.

The Premiers Address and the Budget that I am presenting, individually and collectively attest to progress and development. I am certain 
that this is to be confirmed by the various presentations that Members of Executive Council will be making in the weeks to come.

Apart from demonstrating a sharpening and an increasing understanding of the challenges confronting the Province, this Budget also shows, 
beyond any reasonable doubt, that we have come to grips with the dynamics of governance. Notwithstanding what our adversaries say, it is 
clear in my mind that we are not only beginning to impact fundamentally on the legacy of apartheid, but also consolidating a new 
developmental path for our people and for our country; indeed giving concrete meaning to our vision of A BETTER LIFE FOR ALL.

Honourable Members, we are on track, this Budget is one more milestone in meeting the expectations that our people have entrusted upon us. 
We shall not fail them in creating a productive and a caring society. We also urge our communities to continue to strengthen the 
partnerships that they have developed with all organs of the state in ensuring that this Province is turned into one of the most prosperous 
places in the country.

We are conscious and deliberate in every step we are making in driving the course of our destiny towards this direction. The ANC government 
knows that destiny is no matter of chance; it is a matter of choice. As William Jennings Bryan puts it, "It is not a thing to be waited 
for; it is a thing to be achieved."

Finally, let me thank the Members of this Legislature for their vigilance in exercising their Oversight functions and their critical 
engagement with the presentations we have made in this House and in ensuring that government departments do honour their commitments to 
service delivery. Let me also thank the Premier for the support he has given us throughout this process and his useful comments on the 
various complex decisions we had to make. A word of gratitude also goes to the members of the Cabinet Budget Committee and Treasury 
officials for their important contributions in shaping this Budget and supporting me in all the responsibilities entrusted upon me.

Honourable Speaker, the task assigned is performed.

Thank You.

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