Parliament, Thursday, 8 June 2023 – The National Assembly at its House sitting this morning, agreed on the 2023 Appropriation Bill.
The Appropriation Bill is a piece of legislation that provides for the appropriation of money by Parliament from the National Revenue Fund (NRF) in terms of section 213 of the Constitution and section 27 of the Public Finance Management Act (PFMA).
The Appropriation Bill was tabled by the Minister of Finance Mr Enoch Godongwana in Parliament on 22 February 2023.
The Bill proposes a total vote allocation of R1.077 trillion for the 2023/24 financial
year, excluding direct charges against the National Revenue Fund. The 2023 budget reiterates the government’s priorities as set out in the 2022 Medium Term Budget Policy Statement (MTBPS).
The proposed vote allocations allocate 74% to transfers and subsidies. These are transfers to provinces, municipalities, public corporations, and other non-profit-making entities mainly for the payment of social grants, conditional grants allocations and transfers to public entities, university subsidies and the National Student Financial Aid Scheme.
The Budget continues to maintain the fiscal consolidation strategy of reducing the budget deficit and stabilizing government debt as a percentage of GDP, supporting economic growth by maintaining a prudent fiscal stance while directing resources towards infrastructure investments, strengthening the criminal justice system to fight crime and corruption; and reducing the fiscal and economic risks, including through the Eskom debt-relief arrangement.
The government has committed to achieving these objectives without resorting to tax rate increases that could harm economic growth. In pursuant of higher economic growth, the 2023 budget remains anchored on the objectives of ensuring a stable macroeconomic framework to create a conducive environment for savings, investment and growth; the implementation of growth-enhancing reforms in key sectors, particularly in energy, transport and logistics; and strengthening the capacity of the State to deliver quality public services, investment in infrastructure and fighting crime and corruption.
Having considered the Bill, the Standing Committee on Appropriations recommended amongst others that the Minister of Finance ensures that Parliament’s appropriated funds through this Bill are utilised in a manner as envisaged in the Constitution and in compliance with all laws and regulations that govern the country’s public finances.
Also, the National Treasury makes it mandatory for all municipalities to report monthly on all contracts that have been awarded including the successful bidders, rand value of contracts and itemized billing on the National Treasury’s database.
Having considered the Report of the Committee and debated the Bill, the NA adopted the 2023 Appropriation Bill.
The Bill will now be sent to the National Council of Provinces for consideration.
ISSUED BY THE PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA
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