Budget must provide growth through responsible spending- DA
The DA’s Dion George says Finance Minister Enoch Godongwana’s latest budget must provide a fiscal framework that is focused on reducing the deficit whilst stimulating growth through responsible spending.
George on Monday presented the DA’s budget proposals and expectations ahead of the tabling of the budget by Godongwana.
Godongwana will table the budget in Cape Town on Wednesday.
“The Democratic Alliance's economic policy framework, when implemented, will accelerate the reduction of national debt, and solidify South Africa's fiscal position,” George said.
“This will be accomplished through the cultivation of robust economic growth, which surpasses the trajectory projected under the current administration. The 2023 budget must therefore be anchored on a framework of fiscal prudence that prioritizes the reduction of the budget deficit, while also fostering economic growth and employment generation.”
“The most vulnerable South Africans are paying the price for this failure as the cost of living spirals upwards and drives more and more households into poverty.”
George warned that the country’s economy is in serious trouble.
“South Africa’s fiscal environment remains characterized by an unsustainable level of debt, persistent deficit spending, slow economic growth, stubbornly high levels of unemployment, a deceleration of both foreign and domestic private capital formation, a decline in GDP per capita, escalating living costs and potential food insecurity, and political volatility.
“These circumstances are compounded by factors that fall under government purview such as uncertain private property rights, onerous labour market legislation, inadequate national and local governance, and a large and inefficient public sector dominated by monopolistic state-owned enterprises.”
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