DA says its proposed budget will avoid VAT increase
The Democratic Alliance has proposed an alternative national budget that it believes would grow the economy and create jobs.
The budget proposals came in the wake of a decision by the cabinet to postpone the speech to Parliament by Finance Minister Enoch Godongwana last Wednesday due to unhappiness over proposed tax increases.
The budget will now be tabled on 12 March.
Briefing the media on the party's proposals on Tuesday, DA MP Mark Burke said the government must cut unnecessary expenditures instead of increasing VAT.
"The DA proposes immediate cost-cutting measures that will free up at least R60 billion without cutting essential services. This includes a 50% reduction in government advertising budgets, a 33% reduction in travel and catering expenditures across departments, a hiring freeze for all non-essential government positions for 12 months, and a national audit of ‘ghost employees’ following the PRASA audit that uncovered approximately 10% of their workforce didn’t exist."
Burke added that the DA’s proposals would increase revenue.
"Instead of suffocating taxpayers, South Africa should focus on improving tax compliance and unlocking state assets; increasing tax compliance from 63% to 67% can generate R60 billion per year. Selling underutilised state-owned land and properties could raise R10 billion per year."
He said the party's alternative budget speech seeks to protect essential services and the most vulnerable.
"Unlike the ANC’s reckless approach, the DA’s plan ensures that critical services remain protected, with no cuts to frontline healthcare workers, teachers, SAPS personnel, or social grants.
"The SRD grant should be converted into a Job Seekers’ Allowance, ensuring that it supports employment-seeking efforts. We don’t need lip service; we need service delivery and reforms, and we need them actioned now so that we don’t sit here again next year with the same tired narrative, wondering how it is that South Africans are again worse off.
"South Africa stands at a crossroads. We can either choose reckless tax hikes and unsustainable borrowing or commit to real fiscal reform, economic growth, and efficient governance. The DA’s plan is fiscally responsible, pro-growth, and focused on jobs.
"It is a plan that protects the poor while ensuring the government lives within its means. This plan proves that new taxes and reckless borrowing are not necessary - only political will is necessary."
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