Freedom Front Plus
Freedom Front Plus

Budget Speech must put words into action regarding support for private sector

The Minister of Finance, Enoch Godongwana, must put President Cyril Ramaphosa's words – about the importance of the private sector in growing the economy and creating jobs – into action.

Thus, the Minister must announce measures, including tax incentives, that will create a favourable environment for the private sector.

Further tax and levy hikes will simply undo any and all attempts at creating a favourable economic environment. It will, instead, lead to even greater unemployment.

South Africa finds itself in an economic and financial crisis with unemployment at a staggering 46,4%. Government debt is out of control and currently amounts to more than R4 trillion. This year, the financing costs for this debt will be the country's single greatest expense.

Any attempts at raising the government's short-term income levels through tax increases will have detrimental long-term consequences. On the other hand, tax incentives will serve as a stimulus for growth and investments.

The Minister has no choice but to condemn the government's ever-growing wage bill.

He must also explain why he approved an increase for senior public officials, who are already earning exorbitant salaries, while promises to do just the opposite are made in every year's Budget Speech. More empty words in this regard will not do.

The FF Plus wants to see no further increases to the fuel levy, particularly when it comes to the Road Accident Fund. The Fund is dysfunctional and bankrupt.

A better solution would be to make third-party insurance compulsory for all vehicle owners and to abolish the Road Accident Fund.

Any further reforms to stimulate the economy must include addressing the country's energy crisis and making changes to public enterprises.

It is not feasible nor affordable to offer more lifelines, and expenses on luxuries as well as fruitless and wasteful expenditure must be curbed.

The time for talking is over. It will not save the country. The more unemployment and poverty increase, the more the ANC's support at the polls will decrease.



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