Finance Minister Enoch Godongwana is facing increasing pressure amid the presentation of the Medium-Term Budget Policy Statement (MTBPS), as he is expected to take steps to cut spending and propose solutions to combat rising fuel prices.
Godongwana must present plans for public expenditure, revenue forecasts, and public financial management for the next three years. However, the Cosatu union stated that workers are in a difficult position due to youth unemployment at 48% and economic growth of only 1.2%. Parliamentary Coordinator Matthew Parks emphasized that today's MTBPS cannot be routine.
Parks stated: 'The government must demonstrate a decisive shift to stimulate growth, restore public and municipal services, assist workers and the poor, and instill hope in the nation. It is time to stop proven and unsuccessful neoliberal austerity policies that have undermined growth. Now we must invest to develop the economy and solve the unemployment problem.'
DA prioritizes debt reduction and accountability
DA's finance representative Kingsley Wakelin noted that today's MTBPS will show how seriously the government is committed to fixing public finances. He insisted on the need to improve spending, accelerate reforms, and increase accountability.
Wakelin stated that the government must stabilize debt, spend money on necessary things, and accelerate reforms. He added: 'The government must fulfill its obligations to stabilize debt and increase the primary surplus. This year, South Africa will spend R432.4 billion servicing its debt. This is money that could go to schools, clinics, police, and roads.'
Wakelin also reported that tax collection is expected to exceed February estimates. He stressed: 'This money should not be locked up in new recurrent expenditures. Debt must be paid down and growth supported first.'
Parties demand fuel price relief and anti-smuggling measures
ActionSA MP Alan Bisley stated that his party expects Godongwana to develop immediate assistance for South Africans facing rising fuel prices and the cost of living. Bisley noted that the government must act, recognizing that rising fuel prices lead to increased food prices, basic goods, services, and virtually the entire transport-dependent economy.
He also pointed out that given strong SARS revenue collection above targets, largely due to expanded capabilities, the government has a strong opportunity to provide significant relief through fuel levies without compromising fiscal targets. Bisley called on Godongwana to tackle the illegal economy.
Bisley demanded that the minister announce a three-year moratorium on increasing excise duties on these goods above the inflation rate to provide greater certainty for legitimate businesses, protect jobs, and help curb the growth of the dangerous black market. He also noted that combating the illegal economy would expand the tax base by moving economic activity into the formal sector and recovering revenue lost to the treasury.
Bisley concluded that combining fuel levy relief with decisive action against illegal trade would mitigate the cost of living crisis, strengthen revenue collection, and support economic growth. He added that support for ActionSA's corrective budget would depend entirely on the willingness of the National Unity Government to provide urgent aid to needy South Africans and take action against the illegal economy. 'We cannot support a budget that requires South Africans to bear most of the burden while the government fails to address the fundamental issues constraining our economy.'
Build One South Africa MP Nobuntu Khlazo-Webster proposed that Godongwana cut the VIP budget by 20% and redirect those funds to strengthening local police forces. Khlazo-Webster stated that the MTBPS is an opportunity to strengthen parliamentary power to block wasteful expenditure before it occurs.