MyZA

News, Directory, Events and Other Stuff

You are here: Home / News / Balancing the Books – Alternative Proposals to Make the Budget Beat

Balancing the Books – Alternative Proposals to Make the Budget Beat

Ismail Joosub discusses the postponement of the 2025 Budget Speech; how South Africa has found itself in fiscal strife and alternative fiscal solutions government should consider over increasing VAT.

The post BALANCING THE BOOKS – ALTERNATIVE PROPOSALS TO MAKE THE BUDGET BEAT appeared first on FW de Klerk Foundation.

Issued by Ismail Joosub on behalf of the FW de Klerk Foundation:

On 19 February 2025, at 2 PM, South Africans waited anxiously for Finance Minister Enoch Godongwana to table the 2025 Budget Speech. The anticipation was palpable, with citizens eager to hear the government’s plans for the nation’s finances. However, in an unprecedented move, the speech was postponed to the 12th of March, following internal disagreements within the Government of National Unity (“GNU”) over a proposed 2% increase in Value Added Tax (“VAT”). President Ramaphosa simply conceded, stating, “We have limited revenue. Our revenue as it stands is not able to fund every priority that we have.”

This fiscal shortfall, however, is not merely a consequence of external economic pressures, but is significantly rooted in the government’s own actions over the past decade. Wasteful expenditure, mismanagement of state-owned enterprises (“SOEs”), pervasive corruption, strained international relations and a reliance on external borrowing have collectively eroded the nation’s financial foundation.

Wasteful Expenditure and SOE Mismanagement

Over the past ten years, South Africa has witnessed a troubling trend of escalating wasteful expenditure. In the 2023/24 financial year alone, fruitless and wasteful expenditure reached R2,57 billion, marking a 49% increase from the previous year. This pattern is not an anomaly. In 2017/18, during the twilight of the Zuma years, such expenditure was reported at R2,5 billion, indicating a persistent issue.

State-owned enterprises, intended to be pillars of economic development, have instead become symbols of inefficiency and financial drain. Eskom, the national power utility, has been plagued by financial mismanagement, leading to neglected maintenance and frequent blackouts. Similarly, Transnet, responsible for freight and logistics, has suffered from weak management, theft and sabotage, severely constraining….continue reading this article HERE.

 

Fikile Mbalula: {2012 – 2014} Fikile Mbalula was the Minister of Sport and Recreation from 2012 to 2014.
Known for his dynamic leadership style, he focused on enhancing sports infrastructure and promoting South African athletes on the international stage. Mbalula later served in other ministerial roles, including Minister of Transport.

Category: Tag:

If you feel strongly about this article then feel free to send MyZA a ‘Letter to the Editor’ using the submission form below:

Letter to the Editor

This field is for validation purposes and should be left unchanged.
If this is in response to an article please include that article title here or as the lead in for the first paragraph of your Letter below.

Separate tags with commas

Localise your letter by naming the city your words are about. Add relevant words describing your subject. Single comma separated words of no more than 5
Your Name(Required)
Your Name will be linked to the website below.
Your personal, business or social media web site
Choose NO to not set up a user account on MyZA. User Accounts will allow you to submit letters under your own Author Name

3 Latest Letters to the Editor:

  • Fun South African fact

    Dear Editor Fun South African fact: towns like Franschhoek and Stellenbosch are home to world-class wine farms set in stunning, scenic surroundings. Regards Aressa Smith In Response to/From: Luxury Properties Seized in New Lottery Crackdown

  • Condolences on the Passing of Lusanda Dumke

    Statement by Leander Kruger MPL – DA Buffalo City Constituency Leader: The Democratic Alliance in Buffalo City Metropolitan Municipality mourns the passing of Springbok Women’s rugby player and Mdantsane trailblazer, Lusanda Dumke, who lost her battle with cancer at the age of 28. South Africa has lost an exceptional athlete, a leader, and a source…

  • Rape Kits Delivered, But…

    Statement by Nicholas Gotsell MP – DA NCOP Member on Security & Justice: The DA can confirm that 2 840 rape kits arrived in Cape Town on Monday, following sustained DA oversight and pressure after multiple police stations across the Western Cape were found to be without this critical forensic evidence tool. While this delivery…

Reader Interactions

Comments

  1. Fun South African Fact: What about beer? South African brewery SABMiller ranks – by volume – as the largest brewing company in the world. Saffers love their beer…but the real reason the brewery is so big? SABMiller also supplies up to 50% of China’s beer.

  2. Bra / Bru – friend. This term is commonly used to call a friend, pal or buddy.