The Economic Freedom Fighters (EFF) has described Finance Minister Enoch Godongwana’s budget speech as underwhelming.
It says the speech is short on details on how government is going to do things differently, particularly to create jobs.
Political parties react to the budget:
“The manner in which the fiscus is being handled is not sustainable it is not going to inspire economic growth. But the manner in which we handle borrowing as well is not suitable, is very problematic.
Let’s go look at what is happening in Tanzania, Angola, Ethiopia. Not just to borrow money in order to throw it into a bottomless national fiscus that doesn’t even change things meaningfully,” says the party’s Deputy President Floyd Shivambu.
FF Plus reaction
The Freedom Front Plus has also expressed concern about the country’s growing debt levels.
It says it is also concerned about the number of people who are dependent on social grants and other forms of government support.
Party leader Pieter Groenewald says they are quite satisfied that the Minister of Finance will not increase personal income tax and other taxes.
“We welcome the fact that there is from the government side recognition that ordinary citizens can only afford so much. So no increase in fuel levy and RAF is welcome as well as 1% decrease in company tax, although there are still red lights flickering.”
The Democratic Alliance says Godongwana has failed to address some of the biggest drivers of government expenditure in his budget speech.
The party says while it is satisfied with the general tone of the Minister’s speech, he has failed to tackle issues like the growing public sector wage bill.
The DA’s spokesperson on Finance Dion George: “We did like the narrative that the Minister was offering. He was talking in the right direction. That political space is not conducive to him.”
Minister of Finance Enoch Godongwana tables Budget Speech in Parliament:
Godongwana said in his speech government will use a portion of the additional revenue to accelerate debt stabilisation, promote job creation and support the public health sector.
“This positive surprise has come mainly from the mining sector due to higher commodity prices. The improved revenue performance is not a reflection of an improvement in the capacity of our economy. As such, we cannot plan permanent expenditure on the basis of short-term increases in commodity prices. To be clear, any permanent increases in spending should be financed in a way that does not worsen the budget deficit.”