Finance Minister Enoch Godongwana has been urged to prioritise economic growth and increase infrastructure funding for cities when he tables the Medium-Term Budget Policy Statement on Wednesday.
Godongwana has also been called on to prioritise the provision of the Basic Income Grant.
GOOD Party secretary-general Brett Herron said Godongwana must prove he was prioritising rapid, inclusive and sustainable economic growth.
“Although the ‘mini-budget’ is not a policy-setting event we expect to see indications that we are heading to credible fiscal reforms discussed in the Government of National Unity statement of intent,” Herron said.
He noted that each year’s budget speech and Medium-Term Budget Policy Statement deliver sets of commitments that have not changed a thing.
“We must revise the budgeting template we roll over each year, eliminate unnecessary and wasteful expenditure, and urgently get money into the hands of those who most need it.”
Herron said cutting spending to critical services like education, health and social security would relegate the country to languishing in economic hardship and set the country back for generations to come.
“We also call on the Minister to consider an amendment to the provincial equitable share formula so that the education and health components are transferred to provinces as conditional grants, ring-fenced for the purposes the funding was intended for.
“The provinces need to be deterred from raiding education budgets and cutting teacher posts. It will only entrench and deepen poverty and trap our economy in a cycle of low growth and induced underperformance.”
Herron said Godongwana must give assurance about what the government would do to ensure some cost of living relief for South Africans.
“The SRD Grant can no longer be regarded as a temporary measure. Our economy must prioritise the provision of a Basic Income Grant, which we have calculated should be pegged at a minimum of R999 per month,” he said.
Abigail Moyo, spokesperson of the trade union UASA, said government must prioritise sustainable economic reforms to address the global leading high levels of unemployment as a priority, mitigate inflationary pressures, a sustainable plan for government expenditure and viable solutions to tackle the energy and water crisis burdening households and businesses.
“With no hope for anything new in terms of policy and the government’s usual commitment to keeping its expenditures in check, UASA urges Godongwana to focus on public sector growth and real and nominal GDP growth plans because faster economic growth is a practical way to relinquish poverty and stabilise the future economic outlook.
“During last year’s MTBPS, the economic outlook was gloomy, with Eskom blackouts, an economic contraction of 0.3% and an annual CPI of 5.5%.
“In contrast, the overall outlook is now positive, which creates room for viable economic growth opportunities,” Moyo said.
“We need a clear plan to boost economic growth through investment in critical sectors, support for small businesses, and initiatives to improve productivity and competitiveness.”
UASA also called on Godongwana to clarify the social relief of distress grant (SRD) instead of the “vague extensions we have seen being signed over the last two years”.
Cape Town mayor Geordin Hill-Lewis said the City hoped for a clear signal from Godongwana that there will be no further cuts to housing and informal settlements grants following a R107 million slashing of grant-funding to Cape Town as part of nation wide cuts last year.
“Housing and informal settlement upgrading grants are among the most pro-poor and progressive ways you could possibly spend your budget, and Cape Town has an excellent record of spending at least 99% of this grant-funding over the last five years,“ he said.
Hill-Lewis also said Godongwana should scale up infrastructure funding for cities.
“Cape Town is investing a South African record of R39.5 billion in infrastructure over three years, 75% of which will directly benefit lower income households, but we’d like to do even more, in fact we need to.
“It is important that the Finance Minister follows through on the President’s promise of new and innovative infrastructure funding schemes alongside measures to simplify regulations and cut red tape.”
Cape Times