Parties slam Godongwana’s ‘bailout’ budget
JOHANNESBURG - Political parties have criticised finance minister Enoch Godongwana’s budget, calling it a missed opportunity on setting the country on economic recovery at the expense of the upcoming elections.
Godongwana delivered the budget review on Wednesday.
The official opposition party said the minister failed to address the economic crisis, adding that his budget review was indicative of a ‘panicking ANC’.
DA MP Dion George said the ruling party has no plan to accelerate economic growth, resolve relentless blackouts, stabilise debt, rein in runaway expenditure, support vulnerable South Africans or combat corruption.
Confirmation
“This budget is a confirmation that the ANC only cares for its own survival and not about the plight of battling South African households who are unable to put enough food on their tables.
There was no mention of the socalled food security plan of action which was announced last year to protect consumers from the burden of skyrocketing food prices.
Expanded
“The minister could very easily have expanded the zero-VAT rated basket of food to bring immediate relief to South African households. He could have also reduced the taxes and levies on fuel which would have provided further relief.”
Support
The DA noted the minister’s announcement of the government’s support for private-public partnerships to rebuild South Africa’s crumbling infrastructure - however, it argued there is a notable absence of a coherent plan to fast-track this initiative.
The party welcomed that there appears to be no further direct bailouts to SOEs and no additional funds allocated to the ‘doomed NHI’.
They have harshly criticised the growth forecast down to 0.6 per cent, saying it will significantly impact revenue collection and the funds available for service delivery, with revenue R56 billion lower than expected this time last year.
Revenue
“Load-shedding and the crisis in our logistics sector has also impacted revenue generation significantly. Revenue generated from the mining sector decreased by 39.2 per cent, while revenue generated from the manufacturing sector decreased by nearly 6 per cent.
“The lower-than-expected growth and revenue shortfall has prompted government to launch its raid on the South African Reserve Bank.”