11 February 2009
The SACP welcomes the major thrust of the 2008/9 budget. It is a budget that has had to be developed in the midst of the most serious economic crisis of the global capitalist system since the early 1930s. It is a budget that begins to appreciate that at the heart of this global crisis has been several decades of triumphalist neo-liberalism, of reckless deregulation of financial markets, of a growing gap between the rich and poor, and of IMF enforced rolling back of public spending and of governments` developmental role in the economy.
In this budget, the South African government is responding to the challenge of the crisis not predominantly by baling out failing private enterprises, or by deferring real restructuring (as is happening in most developed countries), but by consolidating our public sector spending, by expanding public sector employment and our public works programmes, and by seeking to drive a much greater strategic coordination of our development finance institutions – among them, the DBSA, the IDC, and the Land Bank. These are all strategic initiatives which the SACP has been calling for over many years.
We particularly appreciate the emphasis placed on rural development and agrarian transformation, and the focus on using land productively. Over the last years, government has not displayed the capacity or the will to drive through effective agrarian transformation. It is now imperative that, together with rural communities, the land hungry and the landless, we ensure that food security and food sovereignty become a central focus of our endeavours.
Increased spending on education, health-care and infrastructure is also welcomed, as is the expansion of the school feeding scheme. The SACP is disappointed that government is still not ready to roll out a National Health Insurance programme, but we at least welcome the commitment to take forward preparatory work in this regard.
The SACP would have however liked to see a much more coherently articulated elements of an industrial strategy to lay the basis for a much sounder medium term strategy to develop the productive capacity of our economy.
Under the circumstances the budget is a pragmatic response that seeks to keep our state and our country focused on our key immediate developmental challenges.
Issued by the SACP
Contact:
Malesela Maleka
SACP Spokesperson – 082 226 1802