MTBPS: Godongwana must cut the GNU down to size, says FMF

FMF Press Release (Economy Growth Business 4)

29 October 2024

Blaai af vir Afrikaanse weergawe.

“The ‘Government of National Unity’ was received and born in sin,” says Martin van Staden, Head of Policy at the Free Market Foundation (FMF). “Instead of cutting wasteful spending, President Ramaphosa grossly expanded the size of his cabinet. Minister Enoch Godongwana must assist the President to bring about necessary fiscal prudence.”

These were among the sentiments shared during a Tuesday morning press briefing hosted by the FMF in anticipation of the Minister of Finance’s medium-term budget policy statement (MTBPS) on Wednesday.

During the briefing, the FMF renewed its call for fiscal responsibility, tax reform, and privatisation of state assets and functions.

“If government wants to restore the confidence of taxpayers, it needs to act swiftly to rein in out-of-control spending – particularly on public sector wages – provide some tax relief, and rid the government balance sheet of uneconomic, costly state-owned enterprises,” continues Van Staden.

At the briefing, the FMF launched its report, “Liberty First: Size of Government,” setting out the practical steps that Godongwana and his Cabinet colleagues can take to ensure scarce taxpayer resources are spent more wisely.

Van Staden, who is the author of the report, says that the profligacy of government is not only unwise, but unconstitutional.

“Section 195(1)(b) of the Constitution requires that government use resources ‘efficiently, economically, and effectively’,” says Van Staden. “This is not a suggestion, but a requirement that has been ignored for decades. The GNU therefore does not merely have a moral and economic, but also a constitutional, obligation to change course.”

The report forms part of a series of five policy papers published by the FMF as part of its Liberty First (www.libertyfirst.co.za) initiative from the end of October through to the beginning of November that outline a practical reform agenda for the GNU.

“We believe that there is scope for real reform after the 2024 general election, but it is incumbent on government to turn goodwill into action. The medium-term budget policy statement and the February 2025 budget are two of the last ‘easy’ opportunities the GNU will have to announce a reform agenda, before the expectation that the next five years will just be ‘more of the same’ is solidified,” concludes Van Staden.

The FMF is also publishing a special report on privatisation on Thursday, 31 October. Dr Christoph Klein, FMF Associate, will be in conversation with FMF CEO David Ansara during a live webinar. Click here to find out more.

Click here for a soundbite by Martin van Staden.

Click here to read the full “Liberty First: Size of Government” paper.

Ends.

***

MTBBV: Godongwana moet die GNU tot grootte snoei, sê FMF

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“Die ‘Regering van Nasionale Eenheid’ is in sonde ontvang en gebore,” sê Martin van Staden, Beleidshoof by die Vryemarkstigting (FMF). “In plaas daarvan om verkwistende uitgawes te besnoei, het President Ramaphosa die grootte van sy kabinet buitensporig uitgebrei. Minister Enoch Godongwana moet dus die President bystaan ten einde die nodige fiskale omsigtigheid te bewerkstellig.”

Dit was van die sentimente wat tydens ’n perskonferensie Dinsdagoggend deur die FMF gedeel is in afwagting op die Minister van Finansies se mediumtermyn-begrotingsbeleidsverklaring (MTBBV) op Woensdag.

Tydens die konferensie het die FMF sy oproep hernu vir fiskale verantwoordelikheid, belastinghervorming, en die privatisering van staatsbates en -funksies.

“As die regering die vertroue van belastingbetalers wil herstel, moet dit vinnig optree om buitensporige uitgawes – veral ten opsigte van openbare sektor-lone – te beperk, belastingverligting te bied, en die staat se balansstaat van onekonomiese, duur staatsbeheerde ondernemings te verlig,” sê Van Staden verder.

By die konferensie het die FMF ook sy verslag, “Liberty First: Size of Government,” bekendgestel, wat praktiese stappe uiteensit wat Godongwana en sy kabinetskollegas kan neem om te verseker dat skaars belastingbetalershulpbronne meer doeltreffend aangewend word.

Van Staden, die outeur van die verslag, meen dat die regering se verkwisting nie net onwys is nie, maar ook ongrondwetlik.

“Artikel 195(1)(b) van die Grondwet vereis dat die regering hulpbronne ‘doeltreffend, ekonomies, en effektief’ aanwend,” sê Van Staden. “Dit is nie ’n voorstel nie, maar ’n vereiste wat al dekades lank geïgnoreer word. Die RNE het, gevolglik nie net ’n morele en ekonomiese verpligting om koers te verander, nie maar ook ’n grondwetlike plig.”

Die verslag vorm deel van ’n reeks van vyf beleidsdokumente wat die FMF vanaf einde Oktober tot begin November as deel van sy Liberty First (www.libertyfirst.co.za) inisiatief publiseer en wat ’n praktiese hervormingsagenda vir die RNE uiteensit.

“Ons glo daar is ruimte vir werklike hervorming ná die 2024 algemene verkiesing, maar dit is die regering se verantwoordelikheid om goeie voornemens in aksie te omskep. Die mediumtermyn-begrotingsbeleidsverklaring en die Februarie 2025-begroting is van die laaste ‘maklike’ geleenthede wat die RNE het om ’n hervormingsagenda aan te kondig, voordat verwagtinge dat die volgende vyf jaar bloot ‘meer van dieselfde’ sal wees verskans word,” sluit Van Staden af.

Die FMF publiseer ook op Donderdag, 31 Oktober, ’n spesiale verslag oor privatisering. Dr. Christoph Klein, FMF Genoot, sal tydens ’n regstreekse webinaar in gesprek wees met die FMF se uitvoerende hoof, David Ansara. Klik hier vir meer inligting.

Klik hier vir ’n klankgreep deur Martin van Staden.

Klik hier om die volledige “Liberty First: Size of Government” verslag te lees.

Einde.

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