Committee Report on 2018 MTBPS

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Finance Standing Committee

06 November 2018
Chairperson: Mr Y Carrim; Mr C De Beer (ANC)
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Meeting Summary

2018 Medium Term Budget Policy Statement (MTBPS)
MTPBS Speech & Money Bills

The Standing and Select Committees, having considered the 2018 Medium-Term Budget Policy Statement, met for consideration and adoption of the revised fiscal framework Report.

The Committees’ observations and recommendations were highlighted as follows: The Committees believed that they need to be more far more effective and efficient in their oversight role, and to the extent the executive fails to fulfil its responsibilities, this is, partly, a reflection of the failure of parliamentary committees to effectively fulfil own responsibilities. The Committees further recommended that the Treasury improve the credibility of its forecasts given the impact that failure to achieve the set targets has on the broader economy. In the next quarterly engagement with the Committees, National Treasury should report on measures it has taken to regularly update its forecasting model, acquire and retain the skills necessary to do economic modelling and improve the degree of certainty in the economic and fiscal targets set. The Committees believe that the government needs to, among other things, do far more to reduce political and policy uncertainty, address key structural challenges, revitalise and stabilise SARS, encourage job-creating investment, spend more efficiently and effectively, act decisively against corruption and tackle the illicit economy more effectively. However, government alone could not ensure the necessary economic growth; Parliament, the private sector, trade unions and other sections of civil society and the public all had a role to play. The government however had to take the lead.

A DA Member suggested the inclusion of a recommendation that the ‘bloated’ Cabinet should be streamlined as part of government’s cost cutting measures. However, this was rejected by the majority and the Co-Chairperson pointed out that the Minister of Finance does not have a say on the composition of Cabinet. The Minister could only offer his view to the President but his views could not be final. The Committees welcome the President’s decision to review the shape and size of the executive and look forward to the outcome.

The Committees adopted the Report on the Revised Fiscal Framework separately. The DA reserved its position on the Reports.

Meeting report

Consideration of 2018 MTBPS (Revised Fiscal Framework Report)
Mr Carrim took the Joint Committees through the Report on the revised fiscal framework.

It was reiterated that the Committees need to be more far more effective and efficient in their oversight role, and to the extent the executive fails to fulfil its responsibilities, this is, partly, a reflection of the failure of parliamentary committees to effectively fulfil own responsibilities, was reiterated.

Mr D Maynier (DA) suggested the inclusion of a recommendation that the ‘bloated’ Cabinet should be streamlined as part of government’s cost cutting measures.

The majority Members protested against Mr Maynier’s suggestion.

Ms D Mahlangu (ANC) said the constitution of Cabinet was not under the Committees’ purview. Also, the President was already seized with the matter, and therefore decisions would be taken at that level.  

Mr Carrim pointed out that the Minister of Finance does not have a say on the composition of Cabinet. The Minister could only offer his view to the President but his views could not be final. However, the Committees welcome the President’s decision to review the shape and size of the executive and look forward to the outcome.

Mr Carrim said the Committees recommended that the Treasury improve the credibility of its forecasts given the impact that failure to achieve the set targets has on the broader economy. In the next quarterly engagement with the Committees, National Treasury should report on measures it has taken to regularly update its forecasting model, acquire and retain the skills necessary to do economic modelling and improve the degree of certainty in the economic and fiscal targets set. The Committees believe that the government needs to, among other things, do far more to reduce political and policy uncertainty, address key structural challenges, revitalise and stabilise SARS, encourage job-creating investment, spend more efficiently and effectively, act decisively against corruption and tackle the illicit economy more effectively. However, government alone could not ensure the necessary economic growth; Parliament, the private sector, trade unions and other sections of civil society and the public all had a role to play. The government however had to take the lead.

Mr N Nhleko (ANC) said Members needed to examine their level of capacity as parliamentarians. Capacity constraints should be not downplayed. There were perceptions out there especially within government bureaucracy that Members were not in a position to analyse some of the technical matters presented by departments and entities before Parliament.  

Mr Maynier said most of the challenges could be attributed to a lack of political will rather than capacity constraints. He suggested that a SARS inquiry be held by the Standing Committee wherein executives would be interviewed under oath and documents subpoenaed.

Mr M Chabangu (EFF) said decisive action had to be taken in dealing with transgressors within government entities. There was need to up the game on compliance. Parliament was not being taken seriously enough.  

Ms Mahlangu suggested that the Parliament Budget Office be given access to departmental and entities documentation that would spruce up the Committees’ capacity.

Mr Carrim said the Committees will decide on the course of action in relation to SARS after the Nugent Commission processes are concluded.

Adoption of Revised Fiscal Framework Report by the Standing Committee

Mr Carrim put the Report on the revised fiscal framework up for adoption by the Standing Committee.

Ms T Tobias (ANC) moved and Mr Nhleko seconded the adoption of the Report with amendments.

The DA reserved its position on the Report.

The Report was adopted with amendments by the Standing Committee.

Adoption of Revised Fiscal Framework Report by the Select Committee

Mr De Beer put the report up for adoption by the Select Committee.

Mr M Monakedi (ANC) moved and Mr T Motlashuping (ANC) seconded.

The Report was adopted with amendments by the Select Committee.

The DA reserved its position on the Report.

The meeting was adjourned.


 

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