Honourable Members, the 2017 Budget has been prepared with a view to strengthening both our economic growth and the transformation of our society. This year’s Budget Review sets out our point of departure:

“To achieve the vision of the Constitution, South Africa needs transformation that opens a path to inclusive economic growth and development.

Transformation without economic growth would be narrow and unsustainable.

Growth without transformation would only reinforce the inequitable patterns of wealth inherited from the past.”

Although our own transformation imperative derives from a particular historical trajectory, many analysts have pointed to similarities with social fragmentation and inequality challenges elsewhere in the world.

In December last year, the economics profession lost one of its great champions of redistribution as a public policy priority. Tony Atkinson was both a leading author and academic in the field of public economics, and an expert in the study of the distribution of income and wealth. He provided compelling evidence that, in his words, “less inequality is associated with greater macroeconomic stability and more sustainable growth.” He argued strongly for active policies to address inequality.

The evidence supports our insistence on a progressive income tax structure, our ongoing work on health insurance and social security reform, our focus on further education and training and our recognition of the structural and technological dimensions of our employment challenge all find resonance in Atkinson’s policy proposals. With an international agenda in mind, he also set out the case for a global individual tax on total wealth, higher official development assistance by rich countries, improved access of households to credit markets and guaranteed public employment for those out of work.

On one important reform, we have taken a giant step forward. We have agreed to implement a minimum wage of R20 an hour with effect from next year. Its implementation will require complementary measures to support workers and employers in vulnerable and low-wage sectors, and enhanced assistance to young and unskilled work-seekers. We also need to seek progress on social security reform alongside phasing in the minimum wage.

Our past efforts have come short of delivering either adequate growth or the social transformation we need. We are at a crossroads now. We need to act urgently to build confidence and support investment. We need to bring all stakeholders onto an inclusive growth and transformation path.

We have proved that we can change course through negotiation, participation and partnership. We have the resilience needed to more forward confidently even in uncertain times.

Last year, impetus was given to several initiatives under Mr Jabu Mabuza’s business sector leadership:

In the year ahead our focus must be on inclusive growth and a transformation action plan. Bold and ethical leadership is needed from all sectors of society.

In this way we can all embrace a vision of substantive meaningful transformation which will allow us to say we all own our economy.

It is not just at the level of leadership that there are transformation opportunities.

In our communities, there are strong bonds and powerful traditions of caring. These are wonderful social assets, and I believe that all of us can commit to doing more to make the lives of fellow South Africans better.

Obstacles there will be many. Overcome them. Detractors abound. Disprove them.

Negativity inspired by greed and selfishness will obstruct us. Defeat the bearers of this toxic ethic.

South  Africans,  wherever  you  are….  Own  this  process;  defend  your  gains;  demand accountability.

Be an active agent for change. Umanyano Ngamandla (Unity is power.)

So, what are the main elements of this budget:

1.        While global growth is slightly better, geo-political and economic uncertainties have increased.

2.        Our low growth trajectory provides a major challenge for government and citizens.

3.        We need to radically transform our economy so that we have a more diversified economy, with more jobs and inclusivity in ownership and participation.

4.        Our financial situation is difficult, but we have still produced a credible budget.

5.        We need to prioritise our spending better, implement our plans more effectively and make a greater impact.

6.        We need to build the widest possible partnership to promote consensus and action on a programme for inclusive growth and transformation.

Allow me to thank you, Mister President and Deputy President, for your guidance. I would also like to thank my Cabinet colleagues and members of the Ministers’ Committee on the Budget for their cooperation and support.

I also thank our Provincial Premiers and Finance MECs, and Municipal Mayors, who share our fiscal and financial responsibilities, and Deputy Minister Jonas and Director-General Fuzile for their integrity and indefatigable commitment to public service.

Members of the House will join me in expressing appreciation to staff of the National Treasury, the South African Reserve Bank, the South African Revenue Service and the finance family institutions.

I am also grateful to the finance and appropriation committees, who have responsibility for considering the Division of Revenue Bill, the Appropriation Bill and today’s revenue and expenditure proposals.

I paraphrase what I said in October last year,

Fellow South Africans, if we make the right choices and do the right things we will achieve a just and fair society, founded on human dignity and equality.  We will indeed transform our economy and country so that we all live in dignity, peace and wellbeing.

This is the time for activists, workers, businesspersons, the clergy, professionals and citizens at large to actively engage in shaping the transformation agenda and ensuring that we do have a just and equitable society.

We also need to consider, in the face of such intractable economic hardships and disparities, whether we should supplement our Constitutional Bill of Rights with a “Charter of Economic Rights” – a charter that would bind all of us to an economy which:

We can draw inspiration from Inkosi Albert Luthuli, when he says: “I believe that here in South Africa with all our diversities of colour and race, we will show the world a new pattern for democracy. There is a challenge for us to set a new example for all. Let us not side-step this task.”

Ours is the collective responsibility, despite many distractions, to live up to the expectations of Oliver Tambo, Walter Sisulu, Beyers Naude, Nelson Mandela, Albert Luthuli, Yusuf Dadoo, Lilian Ngoyi and many others.

In this way we will honour the confidence and trust of our people. In this way our transformation efforts will serve all South Africans.

In his tribute to the South African soldiers who lost their lives with the sinking of the SS Mendi, the poet S.E.K Mqhayi wrote: “Kukhonza mnye ukuze kuphile abanye,” Somebody has to serve, so that others can live.

Can we, in this spirit, say: we have built a better South Africa, with a more inclusive economy, and all citizens living in dignity, advancing economically, over generations to come.

Ke-a-leboha Na Khensa Ndi-a-livhuwa Ngiyathokoza