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11th February 2009
The Inkatha Freedom Party has welcomed
the budget tabled in Parliament today, especially the move to
budget for a deficit of 3.8% of GDP, which is necessary in the
current economic climate.
TASK TEAM
We are pleased that our continued call for a task team
comprising business, organised labour, community organisations
and government has been convened under the leadership of the
President of the Republic of South Africa. We agree that an
appropriate South African response is needed in these uncertain
times and there will be much hardship ahead. We hope that this
task team will come up with ways to create additional jobs.
JOB LOSSES
Job losses through retrenchments and downsizing are a very
worrying factor.
Although some interventions like deferring the mining royalty
regime, more stimuli should have been provided to allow the
private sector to remain buoyant. Need to invest in innovative
initiatives to minimise this impact and the number of jobs that
will be lost as a result of this crisis while at the same time
invest in means of creating more and better jobs in the long
term and an environment conducive to this. A corporate tax rate
cut, however small, would have had a salutary effect.
SOCIAL SPENDING AND INFRASTRUCTURE
We do welcome the increased allocation for spending on social
development and infrastructure related programmes. (a) This is a
step in the right direction, but the question is whether the
poor receive maximum benefit out of these additional
allocations. To this end, the suggestion to introduce a
comprehensive expenditure review must become a reality. (b) The
increase of just R50 for social welfare grants is not enough as
a safety net. The IFP expected the grant (pension) to be raised
to at least R1200pm. (c) We cannot support the R1,6 billion
budget for South African Airways. We need more details and a
high level, in depth investigation needs to be conducted into
SAA's efficiency. (d) Whilst we recognise lower then expected
revenue estimates, the increase in prices of about 40c per litre
for fuel (23 cents general and 17 cents for RAF levy) will add
to inflationary pressures. Revenue side: (e) the increase in sin
taxes was to be expected (f) we welcome the proposed adjustment
to the personal income tax schedule and the revision of the
threshold.
Contact:
Narend Singh MP
083 788 5954 |
