20 November 2020

The ANC in Parliament welcomes and supports the passing of the 2020 Division of Revenue Second Amendment Bill by the National Assembly today, 20 November 2020.

The Division of Revenue Second Amendment Bill (known as the DORA) seeks to amend the Division of Revenue Act, 2020, as amended by the Division of Revenue Amendment Act, 2020, in accordance with the Money Bills and Related Matters Act, 2009 and to provide for matters connected therewith.

The adoption of the DORA comes at a time where COVID-19 has badly impacted the lives and livelihoods of South Africans, putting their lives in an undependable position, which has also resulted in the crippling of our economy. Currently, it is estimated that this year, the economy will increase by – 7.8%. It is on this backdrop that the DORA has allocated R1. 805 trillion among National (51.2%), Provincial (39.9%) and Local (8.9%) of the nationally raised revenue.

To mitigate the effects of the Coronavirus pandemic to private households and businesses, the ANC-led government intervened by, amongst others, providing a relief package of R500 billion, providing special grants to over 6 million unemployed South Africans and providing support to 960 000 companies that have benefited through UIF wage scheme, grants and loans. This proves that the African National Congress cares about all South Africans.

The economic and fiscal challenges that we are now facing as a country are as a result of resources that we chose to deploy to save lives, livelihoods, jobs and businesses. Revenue projections decreased, expenditure increased, resulting in the deterioration of the Budget Balance to -15.7% of GDP, taking our total Gross loan debt to 81.8% of GDP. It is evident that all our ratios are going in the wrong direction and that should be arrested.

Minister of Finance Hon Tito Mboweni reported that government has committed R10 billion over the next three years to the infrastructure fund. He also said the over the next three years DBSA will package blended finance mega-projects of at least R200 billion.

The National Assembly appropriated R3 billion to the Land Bank during the first 2020 Appropriations Amendment Bill. The Minister of Agriculture, Land Reform and Rural Development Hon. Thoko Didiza recently announced the release of 700 000 hectares of land to our people. The department has already received 5 838 online applications, including co-operatives, individuals and companies.

When launching the Economic Reconstruction and Recovery Plan, President Ramaphosa said, “It is an opportunity not only to recover the ground that we have lost over the course of the pandemic, but to place the economy on a new path to growth”. The interventions outlined thus far clearly indicate that we are indeed on a new path of growth.

The adoption of the DORA Bill further illustrates the commitment of government to stabilize our State-Owned entities. Expanding the country’s energy generation capacity is a priority intervention to support a rapid economic rebound is central to us saving our livelihoods. The Minister of Mineral Resources and Energy Hon. Gwede Mantashe shared that the initiatives to deliver a total of sixteen thousand three hundred and thirteen megawatts (16 313 MW) from a mix of energy is currently underway.

The recapitalization SAA with R10.5 billion is part of the crucial interventions to stabilize our entities. As the ANC, we won’t be persuaded into accepting a thesis which says the workers of SAA should be left to fend for themselves. Workers affected by the issues at SAA negotiated well, resulting in R2.8 billion budgeted for their severance packages. A further R2.2 billion provision has been allocated for un-flown tickets. These are ordinary passengers who had bought tickets, therefore, the state airline is legally, morally and ethically bound to honors this liability to the passengers. As the ANC-led government, we cannot renege on this contract and turn our backs on these responsibilities.

It is without any equivocation that the ANC Government has heeded the call and is leading the way. We implore all South Africans, let us roll our sleeves and work together.

Issued by the Office of the Chief Whip, Hon. Pemmy Majodina

Enquiries:

Nomfanelo Kota
Acting Caucus Spokesperson
067 415 1089
nkota@parliament.gov.za
nomfanelok17@yahoo.com