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"The ultimate test of a man is not where he stands on positions of comfort and convenience but where he stands on positions of challenge and controversy. So on some questions Cowardice asks, "Is the position safe?" Expediency asks, "Is the position politic?" Vanity asks, "Is the position popular?" But Conscience asks, "IS THE POSITION RIGHT?"

Dr. Martin Luther King, Jr.

Honourable Speaker and members of the House

In his State of the Province Address on the 21 February 2003, the Honourable Premier of the North West Province remarked that "After nearly nine years of democratic rule in our country, the pendulum against poverty, despair and underdevelopment has begun to swing".

In my ninth Budget Speech, to be delivered in this august House here today, I wish to continue in this very positive and optimistic vein and share the sentiments expressed by our Honourable Premier. After all, one of the most important mechanisms through which democratic rule intervenes in poverty reduction, is through the annual budget of the elected government. Hence the annual budget must always reflect the priorities and aspirations of the people. The budget is arguably one of the most powerful instruments at government's disposal to service the well-being of the population in a balanced and sustainable manner.

At the recent World Economic Forum of 2003 in Davos, Geoffrey Foster made the following remark:

"The argument over whether poverty has declined or increased is irrelevant. The continued existence of poverty should horrify and humiliate us. Let's dispense with the academic debate and take resolute action to alleviate poverty and inequality instead".

Through years of undemocratic rule under our previous dispensation the very fibre of our society has been affected where poverty eroded the standards of living to levels of abject despair, destitution and deprivation.

All honest men and women assembled here today would acknowledge that "...the pendulum ...has begun to swing". On a daily basis, far from the media hype, life has started to have real meaning for the millions of people who now have access to clean and safe drinking water, the millions of children who benefit from the school nutrition scheme, child support grants and free medical care. The benefits of democracy have a tangible impact on the many homes, which have been supplied with electricity and telecommunication.

Through very bold and decisive interventions government has also put in place a comprehensive legislative and institutional framework to broaden access to economic participation by all our people to enhance their livelihoods. Life has not only become better but there is also greater confidence in the future.

In presenting the budget of the people of the North West Province, I wish to submit that our progress and plans in the fight against poverty must be seen in the context of a turbulent world economy, and against a terrible legacy of inequality and marginalisation that we inherited after many years of oppression. One is often challenged when one realizes that too many people still remain in poverty and vulnerability in our beautiful country. However, we can safely say that if it were not for our democratically elected government's sound and appropriate economic policies, in particular through the annual budget, our people would have been in a much worse state of poverty today. Not only has the collective leadership of our country prevented an economic meltdown of the kind that occurred in many richer countries than South Africa in the last few years, but we have also laid the foundation for sustained and equitable growth and development.

As we reflect this afternoon on government's fiscal framework, we are aware of the awesome responsibility bestowed on us. We are carrying the hopes and aspirations of nearly 3,5 million people in our Province at a time of immense challenge in our country's history.

We will be well advised to heed the words of Dr. Martin Luther King never to be coerced to take up positions that are reminiscent of cowardice, expediency or vanity. As a responsible government ours will always be informed by a sound conscience that can pass the critical test "Is the position right?"

The Budget - A key towards empowerment

Subsequent to the demise of the old order and almost nine years into the dawn of our liberation its legacy still continues to haunt our people. Please hear me correctly, honourable members, democracy has taken root in our country and it is flourishing, however, this process is ongoing and requires constant attention and vigilance for it to be sustained and for its continued growth.

Fundamental to addressing the disempowerment of our people, brought about as a result of centuries of colonial and authoritarian rule, was the long and arduous process of constitutional reform and social transformation within our country. At the core of our constitutional democracy is the stated objective of bringing back to our people, of all racial, class, religious and cultural backgrounds, the basic human dignity afforded to them within the Bill of Rights as enshrined in our Constitution.

In the area of representation and freedom we have witnessed over the last eight years just how seriously South Africans of all persuasions have regarded these political and other rights protected within our Constitution. Let me also add that not only are South Africans taking their democratic rights seriously, but so too is the rest of the world.

Today we are held in high esteem by the rest of the international community as a model democracy on the continent, and throughout the world. Our Constitution has been touted by scholars and opinion makers as an example for other societies experiencing similar social divisions and authoritarian regimes. Our leadership within the NEPAD process and the regeneration of the continent bears testimony to the moral and political significance our own transition to democracy holds throughout the continent of Africa and the developing world as a whole.

However, let me hasten to add that the strength of our democratic institutions and their ability to protect and enforce these basic political and social rights are not only significant factors in evaluating whether our democracy is on a steady path to consolidation. Alternatively, these constitutional and democratic safeguards are to be viewed as essential ingredients to social development and poverty eradication within our society. They are meant not only to be viewed as the natural by-products of social development but they should also serve as the immediate source of empowerment for the millions of South Africans who remain in poverty and underdevelopment, to the extent that even this process of reconstructing and developing our society affords the poorest and most vulnerable of our communities an opportunity to influence and affect the outcomes thereof. This is made possible through the democratic principles of responsive, transparent and accountable government.

It is therefore important for all gathered here today and throughout this province to acknowledge that what we, as a Government, table before you in this house serves as part of that democratic process, where we state before the people of this province our continued commitment of providing a better life for all, and the means by which we intend to do this. Former U.S. President Lyndon B. Johnson once said,

" We must open the doors of opportunity, but we must also equip our people to walk through those doors".

In our quest towards pushing back the frontiers of poverty, some of the key issues to be addressed in the 2003/4 Budget include:

* Increased spending in combating HIV/AIDS.
* Increase in Social pensions.
* Extension of child support grant and increased spending on primary school nutrition.
* Job creation.
* Acceleration of housing delivery.
* Increased learner support material.
* Upgrading of schools; and building of new classrooms.
* Deployment of essential medical staff in rural areas.
* Upgrading of hospitals and the construction of additional clinics.
* Increased maintenance of roads infrastructure and construction of new roads especially in rural areas.

MACRO-ECONOMIC PERSPECTIVE

In 2002 the world economy muddled along growing very slowly at about 2%. For all intents and purposes the world economy is in a recession, especially the developed economies of the USA, Europe and other Organization of Economic Corporation and Development Countries (OECD). Some emerging market economies, particularly in the East, performed better than the world average in 2002. South Africa is one of those countries.

Growth in the South African economy in 2002 outstripped average world economic growth and improved upon the country's performance of 2001.

Indeed, economic growth in 2002 was higher than expected. The most recent estimates by Statistics SA (21 November 2002) for quarterly growth rates in GDP for 2002's first three quarters are 3.0%, 3.8% and 3.0% respectively. At this stage it is expected that the South African economy would have achieved an economic growth rate of at least 3.0% in 2002, up from the economic growth rate of 2.2% in 2001. As far as the North West provincial economy is concerned, our current estimates are that the provincial economy expanded in 2002 by 2.1%. The prospects for 2003 seem even more promising.

The mining industry, the main industry in our province, is currently benefiting from high platinum and gold prices. Our tourism industry is growing exponentially and the agricultural sector is also performing well.

The better, but fragile, performance of the South African economy in 2002 is supported by good economic fundamentals, both in terms of external and internal macro-economic stability. External stability is evident in the country's good balance of payment, although the levels of foreign exchange reserves remain low. Internal stability is evident in the relatively stable inflation rate (although as has been stated, inflationary pressures increased in 2002) and the sound fiscal position of government. Regarding the latter, indications are that the budget deficit as a percentage of GDP for the 2002/03 fiscal year will fall to 1.6%, well below the 2.1% projected deficit ratio.

During 2002 inflation picked up, registering a quarterly increase in Consumer Price Index (CPI-X) of 12,7% in the 3rd quarter of 2002, compared to an average increase in CPI-X during 2001 of 6.6%. However, the reduction in growth in the 3rd quarter of 2002 and the strengthening of the Rand exchange rate, suggest that inflationary pressures may ease somewhat. Prospects for a good grain harvest in 2003 also hold out the promise that the pressure on food prices may be reduced in the coming year.

As far as 2003 is concerned, the World Bank in its Global Economic Outlook expects global GDP to rise by 2.5% in 2003. They point out that this average rate masks the reality of widely divergent growth rates. For instance, they expect East Asian countries to grow on average by 6.1% in 2003 and Latin American countries to grow by 1.8%.

For the medium term, specifically the period up until 2006, Global Insight expect the North West Province to grow on average by 2.4% per annum, the second highest in South Africa after Gauteng province. Growth is to be driven by positive prospects in the platinum mining sector, manufacturing sector, financial services sector and research and development sectors. Despite these good prospects, we must be mindful of the legacy that this government has inherited, and the vexing developmental challenges we are confronted with.

THE NORTH WEST ECONOMIC CHALLENGES

It is appropriate to remind ourselves that the main economic development challenges facing the North West Province are unemployment and poverty. We cannot overemphasize the seriousness of the challenge.

At our annual provincial strategic planning Lekgotla this year clear recognition was given to these two primary challenges facing us. In fact let us remind ourselves that the provincial government prioritized as "top ten challenges" due to poverty and unemployment the following:
* Increased employment
* Decrease in poverty
* Increased investments
* Economic growth
* Increased trade - export
* Decrease in HIV/AIDS and other diseases
* Increased food security
* Improved physical infrastructure
* Increased access to resources
* Increased skills base
Since 1995 our annual budget has been one of the most important instruments in confronting these challenges. We are, however, mindful of our own limitations and success can only be achieved through the leading and enabling role of the state, a thriving private sector and active involvement by all sectors of civil society.

It is therefore important that we collectively intensify our efforts to:
* ensure that government at all levels embark on a programme combining short term measures to broaden the social safety net with longer term interventions aimed at sustainable job creation and alternative income earning opportunities.
* maximize the input of our social security system alongside job creation initiatives.
* support a major extension of community based public works programes to create employment, support the informal sector, develop skills and extend social infrastructure.
* accelerate substantial growth in small and micro enterprises, based to a large extent on land reform as well as improved access to finance, infrastructure and marketing.

THE NORTH WEST PROVINCE'S FISCAL RESPONSE

In his 2003 Budget Speech Minister Trevor Manuel stated in no uncertain terms that:
"The budget once recognizes that making the right choices is not just about delivering a better quality of life to our people for a year or two. It is about ensuring that the policy choices we make today are affordable and sustainable ten or twelve years from now".

Hon. Speaker I wish to confirm the commitment of the North-West Provincial Government to improve the quality of life of our people in a sustainable and equitable manner.

We recognize in our expenditure allocations that education, health, social development, and infrastructure development are the most critical aspects in our fight to roll back the frontiers of poverty. In order to ensure that these allocations are appropriate and in line with the needs of our people in a democratic society, the North West Province's fiscal response to poverty and unemployment since 1994 has been threefold. It has been characterized by:
* Budgetary reform
* Expenditure re-prioritisation; and
* Good governance
Let me briefly deal with each of these important areas.

Budget Reform

The essence of budgetary reform since 1994 has been the introduction of a Medium Term Expenditure Framework, accompanied by a system to ensure good control over government expenditure. The most dramatic benefit to the people of South Africa has been that government's deficit has been reduced from over 9.5% of GDP to less than 2% of GDP in less than 7 years. This has lowered government's debt, government's interest burden, eased pressure of interest rates and helped to contain inflation.

In return, this has freed up more money for social spending, contained the living costs facing our poorest, and helped to ease the burden of finance from what it would have been. Our budget reform has therefore been pro-poor in the true sense of the word.

I am glad to share with honourable members this afternoon that the most recent "Quarterly Expenditure and Revenue Report" on the provinces by the National Treasury indicated significant progress by all provinces in the spending by provinces of their budgets.

By 31 January 2003, the North West Province had already spent 79% of its allocated budget for the 2002/2003 financial year, more than the national average of 71%.

The province's budget process is integrated with national government's Medium Term Expenditure Framework (MTEF). To ensure the coordination and complementary nature of programmes, the budget process is marked by intense planning sessions at political level to determine policy priorities and discussions between the Provincial Treasury and provincial departments.

Whilst this integrated approach to the budget process is set to enhance the efficiency of the allocation of spending, reforms of public financial management are undertaken to add to the efficiency of the execution of spending. In the North-West Province a solid foundation for qualitative financial management has been established through improvements of the asset management system, better cash flow management, internal audit as well as the upgrading of the information technology system.

Expenditure Priorities

Spending has been aimed at the delivery of social services. In the2002/2003 budget an amount of R9 billion was allocated to the social cluster. This is set to increase to R10,4 billion in 2003/2004, R11,6 billion in 2004/2005 and R12,9 billion 2005/06, over the three years of the Medium Terms Expenditure Framework, that makes up 78% of spending. Education, health and welfare accounts for the bulk of this spending.

Infrastructure development is seen as critical for the delivery of these social services and for economic development. In 2002/2003 an amount of R754,3 million was budgeted for this purpose. For 2003/04 R940,3 million is budgeted for infrastructure development.The investment in infrastructure will have important spin-offs in job creation and attracting private sector investment.

Skills development and the challenges of HIV/AIDS have also been priorities in the North West Province. In fact, given the macro-economic context set out above and the challenges facing our province, we will have to keep investing in our human capital and redouble our efforts to protect it against the ravages of HIV/AIDS, crime and violence. The experience of many fast growing developing countries have shown that those countries with more expenditure on basic education (literacy and numeracy), better health care and safety and security, are likely to grow faster.

Of particular concern in the North West Province is the HIV/AIDS crisis. The expected impact of HIV/AIDS on population growth in the North West Province has been modelled assuming both a low and high impact scenario of HIV/AIDS. Under the former category, the population of North West Province is expected to increase from around 3.7 million in 2001 to approximately 5.5 million in 2021 (representing an increase of 46% over this 20 year period).

Under the high impact scenario the North West Province population is expected to increase from approximately 3.62 million in 2001 to only 4.07 million by 2021 (representing an increase of only 12.6% over this 20 year period). The impact of HIV/AIDS on future population growth will thus substantially impact not only on future physical planning but also on economic and industrial development.

Good Governance

Good governance is an internationally acknowledged necessity for economic growth and development. In terms of the Constitution, provinces have certain functions and competencies, amongst these is to ensure good and efficient government. Efforts at this have taken the forms of aggregate fiscal prudence and a drive to ensure more efficient service delivery, supported by reforms of the budget process and management of public finances. Despite significant challenges and inherited constraints, the North West Province has performed reasonably well in the pursuit of good governance.

The North West Government has been able to attain balanced budgets and has stabilized the wage bill.

The management of public finances has been of particular concern to the provincial Department of Finance. A review of the Department's activities shows a number of achievements for the previous budget year:
* The Consolidated Annual Financial Statements for the province were prepared within the regulatory time and submitted to the Auditor General for auditing.
* The provincial budget was activated in the financial system within 5 working days of approval by the Legislature.
* Prompt in-year monitoring and reporting of revenue and expenditure of provincial departments to the National Treasury was achieved, in accordance with the Public Finance Management Act (PFMA) and the Division of Revenue Act.
* Stricter controls were applied in the issue of manual (hand) cheques as a means of curbing the use of suspense accounts and achieving better budgetary control.
* The Centralized Creditor Payments system was successfully piloted and implemented.
* The Electronic Cashbook System was successfully implemented at all cashiers' offices in the province to improve revenue collection.
* The Provincial Audit Committee was established and the capacity in the Internal Audit division strengthened.
* Internal Audit conducted risk assessment and risk mapping in all the eleven provincial departments and completed the audit of transfer payments by departments.
* A computerized asset management system was completed.
* Phase 2 of the PFMA was implemented, involving training and capacity building in financial management in provincial departments.
* The Financial Systems Training section was repositioned to offer more coordinated systems training to provincial departments.
* The Forensic Investigations Unit achieved a 90% success rate in cases investigated.
The Presidential Report by the South African Institute of Government Auditors had the following to say about us: "A high fraud awareness factor normally results in relatively lower fraud occurrences. This supposition is supported by data relating to the North West Province. North West Province has the highest fraud awareness factor and also the lowest incidence factor".

These achievements clearly show that the North West Government is committed to good governance.

All in all, Honourable Speaker, the response of the North West Provincial Government to the economic challenges facing us in a turbulent world economy has been appropriate, and worthwhile. We will continue on the course we have set, and will thus continue to roll back poverty and misery. This has been informed by a sound conscience continuously probing "...Is the position right?"

KEY PERFORMANCE AREAS 2003/2004

Honourable Speaker, our achievements thus far have not been easy by any standards. We are mindful that at the heart of the budget process are our people. In the true spirit of Batho Pele they deserve the best possible deal from the system.

Democratic processes and an effective institutional framework are critical for the achievement of growth and development but they are not sufficient as conditions for success. Institutional restructuring and transformation cannot take place in isolation from basic economic and business principles, however urgent we perceive our needs to be and how determined we are to show quick and dramatic results. If we ignore this fundamental point we run serious risks.

Allow me to highlight some of the issues we will vigorously embark upon to enhance our effort in ensuring higher levels of service delivery in a sustainable manner.

Procurement Reform

Inspired by the spirit of the PFMA to put accountability where it belongs, the current centralized procurement system will be replaced by a decentralized one. The Provincial Tender Board Act will be repealed by 1st April 2003 which will have the effect of abolishing the current Tender Board and putting in its place departmental tender committees.

To date each department has appointed a procurement committee whose members were trained by the South African Institute of Purchasing. Provincial Treasury will maintain an oversight function within a delegated regulatory framework. A compliance unit has already been established for this purpose.

One of the key thrusts of government's policy initiatives will be Black Economic Empowerment through affirmative procurement. We are moving towards the setting up of a supplier database with possible accreditation to ensure supplier development.

We are also reviewing all our processes to ensure that we broaden participation in our procurement opportunities especially for women, the youth and the disabled. The importance of affirmative procurement in pursuit of empowerment cannot be underestimated. For the 2002/2003 financial year alone the North West Provincial Government procured goods and services to the tune of R820 million and our projections for 2003/04 is R1,2 billion.

Restructuring of the Public Service

Personnel is the main cost driver within the budget. After a protracted period of negotiations a framework agreement on the restructuring of the public service was agreed upon between government and organized labour.

The challenge of this resolution is that managers must now undertake a thorough skills audit to match the existing skills with appropriate job levels. This exercise will finally enable us to determine the mismatch between existing jobs and skills.

The aim here is to train and re-deploy skills around the civil service with an exit strategy being the last resort. The deadline for finalization of this process is 30 June 2003.

We also welcome the initiatives of the Department of Public Service and Administration to work towards a single public service. The wage distortions especially at local government level cannot be sustained. Lateral and upward mobility can be enhanced through a single public service.

In terms of the current wage bill I am pleased to announce that since 2000/01 personnel expenditure as a percentage of the total budget has reduced from 57% to 52% in the 2003/2004 budget, a reduction of 5%.

It is projected that personnel cost, as a percentage of total expenditure will reduce to about 48% in the current Medium Term Expenditure framework.

Financial Management

We are continuing with the roll out plan for PFMA phase 2 implementation. In October 2002 a financial management capacity building program was launched that will stretch over a 24-month period.

This is specifically targeted at Chief Financial Officers and financial support staff to bridge the skills gap.

Internal controls and risk management plans are continuously reviewed to eliminate fraud and corruption.

In the ensuing year we would also like to change the focus of auditing from merely compliance to performance auditing. The whole notion of value for money is what will inform our approach.

Own Revenue

For the first time in nine years the province has exceeded its revenue collection projection. With effect from the third quarter of the financial year actual revenue collection has consistently been exceeding the budget by 10%.

On this basis it is anticipated that actual collection will be R300,8 million against a budget of R271,7 million at the end of March 2003.

The higher than normal collection can in the main be attributed to the enhancement of internal controls and the computerization of revenue receipts.

The second contributing factor is the establishment of the provincial revenue committee whose membership comprises representatives from all departments.

The committee's main responsibility is to unlock obstacles for revenue collection. Next year the target is to recover moneys owed to government.

Information Technology

Information Technology has become an important enabler for business decision-making and provides effective communication. As a result, we as government have decided to catch up with the advancement of technology commencing with the preparation and roll out of E-government.

We are currently busy with the upgrade of the Walker financial system so that we can accommodate more modules, which are required by the PFMA in the system. One of the requirements of the Act is to convert to accrual accounting in future and the systems should therefore be in a position to support us.

We have already implemented the computerized asset management system and are currently busy implementing the inventory management system which will be key in supporting the control of inventory in departments.

Corporate Governance

As it is becoming the trend in most private sector organizations government wants to focus on its core business. However, we need to acknowledge that we have inherited parastatals and government supported institutions whose roles need to be redefined in the changing circumstances.

The highly publicized King II report as well as some of the serious corporate blunders e.g. ENRON in the U.S.A. and notably some of the recent experiences in our own country, e.g. Corpcaptial and Regal Treasury once again sensitized society about the importance of good corporate governance. The Executive Council has adopted in principle a set of protocols that will bring government's oversight responsibility towards its subsidiaries in line with best practices.

These include issues such as performance evaluation, risk management, business ethics, organizational integrity, etc.

Integrated Planning

The Premier established an Intergovernmental Forum which has been in existence for the last three years where we interact at political level with organized local government and traditional authorities. Substantive progress has been registered to enhance our efforts towards cooperative governance.

One area that needs our immediate attention is integrated planning (properly costed) between the three spheres of government. The long-awaited IDP process has not reached its full implementation phase yet and a strategic opportunity can be lost if these matters are not attended to. Our collective effort can accelerate service delivery and maximize our financial input.

The whole question of devolution of functions must also be completed as a matter of urgency. Some of the envisaged devolutions have serious budgetary implications.

BUDGET FRAMEWORK

The results of government's bold macro-economic policies since 1996 ultimately find expression in our budgetary allocations for this year. By consistently pursuing sound economic policies amidst turbulent and volatile global circumstances, government is in a position to release additional resources without having to borrow for critical areas of service delivery.

The short-term sacrifices are indeed yielding long-term, sustainable results. Through decisive leadership we were not coerced into positions of cowardice, expediency and vanity. Our conscience still tells us that ours is the right position.

Revenue

Total revenue is budgeted at R13,203 billion; an increase of R1,73 billion or 15% from the last financial year.

This amount is made up as follows:
* National transfers R12,869 billion
* Own revenue R333,3 million
Revenue increases to R14,682 billion in 2004/05 through to R16,069 billion in 2005/06.

Expenditure

We have adopted a revenue driven budget with no borrowing and our expenditure is therefore limited to the available revenue and stands at R13,203 billion.

Social Cluster

Our social cluster accounts for the bulk of the budget and is R10,351 billion for 2003/2004, an increase of 19% over its 2002/2003 level. This represents 78,4% of the total budget.

Social welfare services accounts for R3,22 billion or 24,4% of total budget - an increase of 31% over its 2002/2003 level. The substantial increase is occasioned by the addition of a projected 80 000 new beneficiaries to the system at a cost of R314 million. Key features of our social welfare spending include:
* Phasing in of our child support grant up to 8 years in the first year, 10 years in the second and up to fourteen years in year three
* R5 million for the administration of the Child Justice Bill
* R60 per month increase in social pensions at a cost of R130 million
Education accounts for R4,768 billion which is 36% of the total budget. The 2003/2004 figure reflects an increase of 11% over its 2002/2003 level. Some of the key focus areas include:
* Learner support material receives R125 million to improve expenditure per learner from R170 - R250 per annum
* Building of eleven more schools and 140 additional classrooms at a cost of R71 million.
* Building of sanitation facilities at 56 schools at a cost of R50,6 million.
Health is budgeted at R2,357 billion and accounts for 17,7% of the total budget. The 2003/2004 figure reflects an increase of 23% over its 2002/2003 amount. Some of the key focus areas for this substantial increase include:
* Recruitment of 455 critical health professionals to be deployed mostly in rural areas at a cost of R89 million
* R254 million has been provided for HIV/AIDS related expenditure. The Department has appointed 45 NGO's to deal with home based care
* An additional R47 million for medicines raising the total to R200 million
* Building of 10 additional clinics and the upgrading of 49 clinics at a cost of R30 million
* R72 million provided for the primary school nutritional programme feeding learners in 1379 schools daily.
Economic cluster

The Economic development and infrastructure cluster has been allocated an amount of R2,269 billion. This amount reflects an increase of R339 million or 19,4%. This allocation increases to R2,392 billion in 2004/2005 and R2,473 billion in 2005/2006. This is quite a sizeable amount by any standards that government is injecting into the provincial economy.

Some of the key programmes in this cluster:
* R20 million as a start-up fund for the North West Economic Development and Industrial Strategy (NWEDIS).
* An additional R100 million for roads especially in rural areas raising the total for roads to R233 million.
* Invest North West receives R8,5 million for investment promotion.
* R348 million for the construction of 18 000 new houses.
* R3,5 million start up fund for the food mountain project; this initiative is intended to attract partnerships in the private sector to stabilize household food security in our province.
Since 2000/2001 the Province received increased funds for infrastructure. Low spending levels were experienced in previous years because of capacity problems in project management. The necessary institutional arrangements are now in place and our projected expenditure on capital projects for 2002/2003 is 72%. An amount of R940,3 million has been provided for infrastructure in 2003/2004 on increase of 24,7% or R186 million over 2002/2003.

Our fiscal stance has been favouring social services because we belief that investing in people is a prerequisite for long-term economic growth. We are, however, mindful that we should create the material base for human development through economic infrastructure. During their forthcoming budget debates my colleagues in the Economic Cluster will elaborate on some of the detailed programmes to enhance economic development in pursuit of higher levels of employment creation, economic empowerment and local economic development.

Governance cluster

The Governance Cluster has been allocated an amount of R524,7 million.This amount increased to R549,794 billion in 2004/2005 and R526,860 billion in 2005/2006.

Additional funds provided will be used for the following:
* R7,5 million provided for the extension of the legislature building
* An amount of R10 million provided for the employment an of additional 35 internal auditors
* An amount of R12 million provided for the roll out of the network to new sites.
* We have increased the budget of Safety and Liaison with 90%, from R9,8 million to R18,5 million, to strengthen our efforts in crime prevention.
THE WAY FORWARD

Hon Speaker it would be remiss of me not to express my sincere gratitude to:
* The Honourable Premier for preserving a good conscience in pursuit of improving the quality of life of the people in the North West.
* Fellow EXCO colleagues for your support and guidance.
* Honourable Z. Sebekedi and Honourable A. Venter Chairpersons of the Finance and Public Accounts Standing Committees respectively; for your valuable inputs and cooperation.
* The Superintendent General of Treasury Mr Phineas Tjie and the management and staff in my Department; I am really honoured to be surrounded by such committed and professional men and women.
* The Director General and Heads of Departments for your diligence in implementing sometimes very difficult policy decisions.
* Our task has also been greatly facilitated by the office of the Auditor General, Internal Audit Committee and the Tender Board. Your role was invaluable in enhancing accountability.
* To Liz and the family, your support has kept me focussed in applying myself maximally to the task at hand.
* To the general public who attended: thanks for coming to share with us this day.
Our transition to democracy has captured the imagination of the whole world. South Africa's beacon of hope has brought in its wake a tremendous amount of goodwill and a spirit of co-operation which augers well for the future.

The political leadership demonstrated at all spheres of government thus far has been remarkable. The key is not to be distracted.

To translate our policies into tangible results warrants a high degree of discipline. Within a volatile and sometimes turbulent macro-economic environment it is important to exercise decisive leadership i.e. the courage to do the right things.

Honourable Speaker, Government has made its choices. These choices have again put into sharp focus the plight of our people. Theirs is a legitimate and just plight. It therefore calls for an equitable distribution on our part of the available resources to provide for the material well-being of all our people on a sustainable basis. Failure to achieve these objectives will indeed render democracy meaningless.

We have no intention to succumb to cowardice, expediency or vanity.

Our conscience still informs us the path we have chosen for the country in general and the province in particular remains "the right position". The facts are up for scrutiny.

I thank your Honourable Speaker.

Source: North West Provincial Government (http://www.nwpg.gov.za)