DA wants Eskom privatised, basic income grant
THE DA is calling for the privatisation of Eskom, the immediate reduction of unemployment, and the conditional introduction of a basic income grant ahead of Finance Minister Enoch Godongwana’s Budget Speech in Parliament tomorrow.
Yesterday, DA spokesperson for finance Dion George outlined his party’s turnaround vision for the country.
He said his party would reiterate its call for the privatisation of Eskom and the opening of the energy sector to Independent Power Producers.
George said in the interim, Eskom must prioritise streamlining its procurement processes while letting in massive private capacity to power a growing South Africa.
“By opening the energy sector, innovation and voluntary action will keep the lights on and the wheels of the economy moving towards the growth rate needed to address declining economic participation,” George said. He added that the DA was not in support of creating a new electricity ministry or declaring a state of disaster, saying his party would not support any expenditure for such an effort, as indicated by the governing party.
George said Godongwana’s 2023 Budget Speech must provide a final framework that was focused on reducing the deficit while stimulating growth through responsible spending.
“The 2023 budget must therefore be anchored on a framework of fiscal prudence that prioritises the reduction of the budget deficit while also fostering economic growth and employment generation,” he said.
George said his party’s alternative budget set out several proposals for tax relief due to the current cost of living emergency, fuel levies must be dropped, and an expanded zero-rated VAT must be considered now.
“The DA will provide conditional direct income support for the most vulnerable in our society. It will pay for this by accelerating economic growth and generating the necessary revenue.”
George said the government wanted to position the provision of a basic income grant as an either-or, saying if it was to provide the grant, “we will argue that tax increases, on VAT in particular, will be required.”
According to George, this was a trade-off because the government had mismanaged the people’s money and was unable to self-correct its corruption-riddled behaviour.