Since provinces are at the front line in much of this social spending, it is logical that Gauteng s budget should also reflect these priorities. We applaud particularly the tax concessions for lower income earners and the poverty alleviation programme announced by the Minister, and wish to stress that Gauteng intends to make a full contribution to the national investment in social development and in social equity. The form and content of our new system of intergovernmental fiscal relations is beginning to take shape. The Provincial Borrowing Powers Act is in place, and significant progress has been made in addressing the question of the equitable share of nationally collected revenues to which each province is entitled under the Constitution. We are expecting national legislation on this matter is due course.
Much ground still needs to be covered, but there has been significant progress.
It was therefore disturbing to hear criticism of the way that budget shares were decided upon, especially coming from a province that has had more than its equitable share of revenues per capita. Let me try to put things in the correct perspective. The new method of sharing revenues among provinces relies on part of the FFC proposals. These proposals are structured in such way that equity in per capita allocations will be achieved over a five year time period. Last years allocations, which came from the function committees, were very prejudicial to Gauteng, and resulted in a total allocation from national government of R1295 per person resident in this province.