19 February 2025
Blaai af vir Afrikaanse weergawe.
The Free Market Foundation (FMF) welcomes the postponement of the National Budget by the Finance Minister, Enoch Godongwana, earlier today.
The delay follows a reported dispute within the Government of National Unity (GNU) over the Minister’s proposed 2% increase in Value Added Tax (VAT), which would have seen VAT increase from 15% to 17%. The proposed increase was rejected by the partners in the GNU.
“South Africa’s fiscal position means that any additional taxes would place a crushing burden on an already fragile tax base, eroding the purchasing power of all South Africans.” said David Ansara, CEO of the Free Market Foundation.
“While the uncertainty generated by the last-minute postponement is understandable, the delay affords the Minister of Finance the time to develop a Budget which is better suited to the present economic conditions in South Africa,” Ansara said. “Instead of increasing taxation or borrowing, Minister Godongwana should focus on radically reducing the size and scope of government.”
In the absence of fundamental structural reforms to unlock economic growth, South Africa is unlikely to reduce its growing deficit of -5% as well as its projected debt-to-GDP ratio of 75.3% in the 2025/26 financial year.
“South Africa has been sleep-walking off the fiscal cliff. This delay should be a wake-up call to the government to get its finances in order. Rather than hiking taxes, the government should be living within its means and aggressively cutting back on public sector spending,” Ansara said.
Ends.
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FMF verwelkom die uitstel van die Nasionale Begroting, vra vir aggressiewe bestedingsbesnoeiings
19 Februarie 2025
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Die Vryemarkstigting (FMF) verwelkom die uitstel van die nasionale begroting deur die minister van finansies, Enoch Godongwana, vroeër vandag.
Die vertraging volg op ‘n beweerde dispuut binne die Regering van Nasionale Eenheid (RNE) oor die Minister se voorgestelde 2%-verhoging in Belasting op Toegevoegde Waarde (BTW), wat BTW van 15% tot 17% sou laat styg het. Die voorgestelde verhoging is deur die vennote in die RNE verwerp.
“Suid-Afrika se fiskale posisie beteken dat enige bykomende belasting ‘n verpletterende las op ‘n reeds brose belastingbasis sal plaas, wat die koopkrag van alle Suid-Afrikaners erodeer.” het David Ansara, hoof uitvoerende beampte van die Vryemarkstigting, gesê.
“Terwyl die onsekerheid wat deur die laaste-minuut-uitstel geskep word verstaanbaar is, gee die vertraging die Minister van Finansies tyd om ‘n begroting te ontwikkel wat beter pas by die huidige ekonomiese toestande in Suid-Afrika,” het Ansara gesê. “In plaas daarvan om belasting of lenings te verhoog, moet die minister daarop fokus om die grootte en omvang van die regering radikaal te verklein.”
In die afwesigheid van fundamentele strukturele hervormings om ekonomiese groei te ontsluit, sal Suid-Afrika waarskynlik nie sy groeiende tekort van -5% sowel as sy geprojekteerde skuld-tot-BBP-verhouding van 75,3% in die 2025/26-boekjaar verminder nie.
“Suid-Afrika was besig om by die fiskale krans af te slaapwandel. Dié vertraging behoort ’n wekroep vir die regering te wees om sy finansies in orde te kry. Eerder as om belasting te verhoog, behoort die regering binne sy vermoë te leef en aggressief op openbare sektorbesteding te besnoei,” het Ansara gesê.
Einde.
