As I already indicated, this administration has prepared a National Development Plan, drawing on expertise and advice from South Africans of all walks of life. The NDP reflects the priorities underpinning this budget, and prepares the ground for the next phase of our economic and social transformation.

Central to the NDP, Mister Speaker, is our commitment to partnership – to a social compact to reduce poverty and inequality, and raise employment and investment.

To make more rapid progress in creating jobs and reducing poverty, we have to grow our economy at 5 per cent a year or more.

To achieve this, and to establish a growth path that is inclusive and rapidly promotes black economic development, a wide range of initiatives are under way:

•        Accelerated public infrastructure investment,

•        New spatial plans for cities, improved public transport and upgrading informal settlements,

•        Support for special economic zones and manufacturing incentives in the Industrial Policy Action Plan,

•        A tax incentive to encourage youth employment,

•        Further expansion of public works programmes,

•        A renewed focus on accountability and quality in education,

•        Phasing-in of National Health Insurance,

•        Further investment in renewable energy and support for the transition to a low-carbon economy,

•        Steps to professionalise the public service and overhaul procurement and supply chain management.

Yet I need to caution that success in implementing these plans depends on discipline, hard work, cooperation and sustained improvements in productivity, both in the public and the private sectors. Our present circumstances oblige us to live and spend modestly and keep a careful balance between social expenditure and support for growth.

And so in framing the 2014 Budget, Mister Speaker, we have reprioritised expenditure within the overall ceiling set in the October Medium Term Budget Policy Statement. The budget deficit will steadily decline over the period ahead.

Mister President, the next administration will inherit sound public finances, a platform for implementation of the NDP and a framework for collaboration with all stakeholders in driving social and economic transformation forward.