Political parties said that the Budget speech delivered by Finance Minister Enoch Godongwana on Wednesday didn’t offer a clear plan to grow the economy. Picture: Ayanda Ndamane/Independent Newspapers
Political parties said that the Budget speech delivered by Finance Minister Enoch Godongwana on Wednesday didn’t offer a clear plan to grow the economy.
IFP deputy leader and finance spokesperson Mzamo Buthelezi said that he didn’t expect much from the Budget speech.
“Government departments have failed to put plans in place to grow the economy. At the end of the day it’s the people of South Africa who are suffering.
“All the government departments are under-performing and the budget they are getting is not being used to benefit us all.”
Buthelezi added that economic growth was very low.
“We are also concerned that public servants will be allowed to access their pension fund before retirement. If they use that money how will they survive?
“We are also concerned about the withdrawal from the Gold Foreign Exchange Contingency Reserve account (GFECRA), this could lead to major problems down the road if we use those funds.”
Dr Dion George, DA spokesperson on finance, said the government had no plan to accelerate economic growth, resolve relentless blackouts, stabilise debt, rein in runaway expenditure, support vulnerable South Africans or to combat corruption.
“The DA notes the minister’s announcement of the government’s support for private-public partnerships to rebuild South Africa’s crumbling infrastructure. Yet, there is a notable absence of a coherent plan to fast track this initiative further.”
George added that they welcomed the fact that there are no further direct bailouts to SOEs and no additional funds are allocated to the doomed NHI.
“This is where the good news ends.
The government has further adjusted its growth forecast downward to 0.6%, significantly impacting revenue collection and the funds available for service delivery – revenue is R56 billion lower than expected this time last year.”
George said that the lower-than-expected growth and revenue shortfall have prompted the government to launch its raid on the SA Reserve Bank.
“It appears that the government intends to drain the Gold and Foreign Contingency Reserve Account of R150 billion. The DA has already indicated that we strongly oppose this desperate bailout measure,” George said.
Herman Mashaba, ActionSA president, said the budget was indicative of a ruling party which has run out of options after decades of mismanagement and dismal economic growth.
“We cannot afford more of the same.
South Africa’s economy needs urgent, innovative interventions to get us back on track. Real GDP growth is expected to come in at 0.6% for 2024, which is entirely insufficient to grow the economy, the tax base or to create jobs.
“The budget deficit is growing despite repeated broken promises that it would decline, and debt servicing costs are expected to consume more than 20% of available funds.”
Mashaba added it was unsurprising that the budget offers struggling consumers little relief from rising inflation.
“The meagre increase in social grants will do nothing to alleviate the suffering of those trapped in poverty amid the ruling party’s economic policy failures.
“It is deeply concerning that at a time of budgetary cuts along front-line services, the ruling party has decided to allocate an additional R200million towards political party funding of which it will receive the largest share.”
The Mercury
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