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Finance Minister Enoch Godongwana
Political parties have expressed mixed reactions following the tabling of the Medium Term Budget Policy Statement (MTBPS) by Finance Minister Enoch Godongwana in Parliament.
Most of those who are part of the Government of National Unity (GNU) have commended the statement. However, some that are outside the GNU have expressed reservations.
The Democratic Alliance (DA) and the Inkatha Freedom Party (IFP) are some of the parties that are part of the GNU that have welcomed Finance Minister Enoch Godongwana’s speech.
DA leader John Steenhuisen and Inkatha Freedom Party (IFP) MP Nhlanhla Hadebe expressed positive sentiments about it.
Steenhuisen says, “If we have the discipline now to stick to the announcements today. We are going to see the South African economy grow. More South Africans getting into jobs and reducing the costs of leaving for our people in South Africa and I think that is all good for us.”
Hadebe adds, “Yes, there is financial stability. In fact, as we speak now, there are signs that there is financial stability in this government, and we are really happy.”
But the majority of parties that are not part of the GNU criticised Godongwana’s speech. ATM MP Vuyolwethu Zungula, EFF leader Julius Malema, and Athol Trollip from ActionSA.
Zungula says, “What we have a problem with as the party is the fact that he is going to announce what the problems are, but not offer solutions. For example, the issue of illicit trade is an issue that is damaging to the economy because illicit trade affects the lives of South African citizens. It also affects how SARS cannot collect proper taxes, but at the same time, he is not availing resources to SARS.”
Trollip explains, “Sub-Saharan countries, developing countries, are performing much better than we are. Both this has everything to do with the ANC government, which just can’t see economic growth. Then the minister spoke about revenue. I think revenue is really important. We were the party that championed more funding for SARS. SARS has shown that they can collect more not just from the man on the streets who pays tax but around the recent economy. I’m very pleased to hear the minister talking about the recent economy because we will never meet revenue targets and we will never have enough money to govern properly as the illicit market and economy grow.”
Malema says, “This is basically making sure that the outsource which the government is supposed to do, they are making sure that the private sector is at the buy position to compete with services that need to be provided by the state in that you are undermining the state’s capacity to deal massively with infrastructure development. There is no clear plan on how to deal with health. On how to deal with issues of employment, and also the deteriorating infrastructure in South Africa.”
Even though the ACDP is not part of the GNU, it had a different view. ACDP MP Steve Swart says, “So the ACDP believes that the ship is moving in the right direction. And this is the first step in that direction, although our economic growth is still low. Although our debt is still high and debt service costs are still high. There are positive green shoots of economic growth, and that is necessary for job creation and for poverty alleviation, and for increased revenue. What are those positive shoots?
“Our power has largely been sorted out. Our ports and rails are being improved. And the water sector is also being improved. If we can solve the crime and corruption issues, then our country is set to increase economic growth and an increase in job creation,” Swart adds.
