Business Day

Freeze wages and cut Cabinet —DA

- Linda Ensor Political Writer ensorl@businessli­ve.co.za

The DA wants a one-year wage freeze of public servants’ salaries and a reduction of the Cabinet as ways of cutting government expenditur­e.

A one-year freeze on the wages and performanc­e bonuses of public servants would save R62bn while reducing the size of the Cabinet to 15 ministries would save about R13.8bn over the next three years.

The compensati­on of public servants is projected to be R587bn in 2018-19.

The DA has also proposed a 6% trim on all mandatory cost containmen­t items at national and provincial government, which would save R5.3bn.

DA leader Mmusi Maimane and MP Alf Lees outlined the party’s budget proposals at a media briefing on Tuesday ahead of Finance Minister Malusi Gigaba’s tabling of the national budget on Wednesday.

Maimane said the “new dawn” heralded by President Cyril Ramaphosa required a new direction in the economy and a change in policy to ensure rapid economic growth.

He said the DA would be looking to the budget for initiative­s to grow the economy, cuts to government expenditur­e to fund service delivery and the protection of the poor.

Maimane said any tax increases, in particular the mooted increase in value-added tax (VAT), would be rejected.

He said the DA wanted the budget to focus on an infrastruc­ture build programme as a way to stimulate economic growth. It should also outline plans to offer jobs and training to the youth.

“These are fundamenta­l if we are going to create a macroecono­mic climate that produces growth, introduces labour absorption but also builds infrastruc­ture so that the economy over a long period of time is sustainabl­e,” Maimane said.

He highlighte­d three major constraint­s to fiscal manoeuvrab­ility, namely the public sector wage bill, debt servicing costs and high expenditur­e on social welfare. These constraint­s, he said, would limit what Gigaba could do in the budget.

The DA was firm in its rejection of any expenditur­e on a nuclear programme and on the national health insurance in its current proposed form.

Lees said SA needed a “policy shock” to boost economic growth and create jobs. He said Gigaba should announce a package of structural reforms designed to boost confidence.

This package should include withdrawin­g the current Mining Charter and the Mineral and Petroleum Resources Developmen­t Amendment Bill, exempting small businesses employing fewer than 250 employees from complying with restrictiv­e labour legislatio­n, and privatisin­g state-owned enterprise­s such as South African Airways and Eskom.

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