Budget Expectation Statement: ‘A balancing act second to none’

There’s no beating around the bush – this Wednesday’s tabling of the Special Adjustments Budget and outlining of the Division of Revenue Act will be a balancing act second to none.

This Budget is a response to a crisis – situated within our existing crisis of junk status and a smaller revenue pool to draw from – during this fight against the spread of Covid-19.

South Africans are acutely aware that Covid-19 has wreaked further havoc and places us all on the back foot. The effects of this global pandemic on communities, businesses, financial markets and government will require strong and decisive leadership.

What we expect of Finance Minister Tito Mboweni is that the Budget will be focussed on economic recovery and job creation, while ensuring that drastic measures are taken to cut non service-delivery and non-essential line items from budgets across the board.

Indeed, this will mean that SOEs – such as South African Airways (SAA) – should therefore not get any further bailouts or state guarantees. All SOEs at this time in our country’s economic climate should either shape up financially, or close up shop and invite private sector partnerships so as to sustain jobs and to remain competitive.

This Budget must predominantly focus on healthcare, food security and local economic development, and should fundamentally transform the way we do business in our country.

The IFP will support Minister Tito Mboweni’s approach to navigating these uncharted waters as he balances this Adjustment Budget, but only if he is able to wrest off his opponents, who are politically and ideologically at war with the state coffers.

Contact:
Inkosi Mzamo Buthelezi MP
IFP Deputy President and Spokesperson on Finance
072 390 6112