Not left, nor right

If the Grocott's Mail team were to grant me one wish for my column, then it would be this: that readers learn to look deeper into what is happening in respect of South African politics rather than pay attention simply to the theatrics.

Sadly, theatrics dominated the State Of the Nation Address (SONA) again. Yet most of the predictions made in last week’s column about SONA, in respect of the substance of the speech, made it into the speech.

Quoting former African National Congress president, OR Tambo, a number of times, President Zuma set to unite the ANC in this its electoral year.

The first half of the speech was dedicated solely to what his administration had achieved while the second half emphasised “radical economic transformation”.

Yet this term means different things to different people, even in the ANC itself.

For some, it means more investment into the various sectors of the economy and unlocking economic growth, while for others it means restructuring the economy altogether. the high cost of data and will pay attention to it in its policies and plans. The youth received a special mention in this regard and it is invigorating because it is our young people that must be at the cutting edge of technological development.

The five-and-a-half-thousand-word speech introduced the practice of becoming stricter with competition cartels, whereas claimants of land will have a tougher time in merely accepting financial compensation instead of taking the land.

In particular, the controversial 50-50 proposal, made a few years ago, has had 13 successful cases benefiting nearly 1 000 farm-dweller households. This programme seeks to give farmworkers, those working and living on the farm, 50% of the ownership of the farm.

A feather in the cap of the Eastern Cape was the acknowledgement of Vanecia Janse, a farmer from the Koukamma municipality, who received the best woman farmer of the year award in 2016.

Now that SONA 2017 is done, attention turns to the Budget 2017.

The Minister of Finance will have to put cash to the plans laid out by the president in his SONA. Currently, the Treasury is running a tight fiscus and the president alluded to this in his SONA when he reminded university students and their parents in particular that government had other priorities too, not just higher education.

He specifically mentioned water, sanitation, early childhood development and a good public transport system - which residents of Makana can easily agree with.

Uppermost in people’s minds therefore, as they prepare for any budget speech, is where the money will come from.

Speculation is rife on an increase in VAT, which will be devastating for the poor.

The Davis Tax Commission has proposed, through a number of measures, how the tax base can be increased.

The so-called inheritance tax, aimed at contributing a few more billion Rands to the state’s coffers, is said to be one such measure. The socalled ‘sin tax’, on traditional beer, alcohol, cigarettes and fizzy sugar drinks is bound to increase. Given the gross inequality in our country, it would be progressive to see an increase in the personal income tax of the wealthy as well.

Hopefully the 17 million citizens who benefit from social grants will be pleased with an increase, while students will see more money being allocated to entities such as the National Student Financial Aid Scheme (NSFAS).

It is an age-old struggle in politics for governments to swing between two fiscal approaches.

Centre-left governments believe in spending more in order to pump more life into the economy while centreright ones on the other hand consider spending less, austerity measures and being ‘more responsible’ in spending as the way to cut budget deficits, save more and improve credit ratings.

Politically, neither thinking has proven absolutely correct.

What is important is that the test of any budget is how it improves the lives of the most vulnerable in our society, while remembering that all of us, no matter how poor, pay tax. • Wesley Seale lectures South

African politics at the University Currently Known

as Rhodes (UCKAR).