By Thapelo Molefe
The Institute for Economic Justice (IEJ) has slammed the National Treasury’s approach to fiscal policy, calling it “the worst of both worlds” for cutting spending on critical services while imposing tax increases that burden the poor.
“This road-to-nowhere sought to limit further egregious budget cuts through the unpalatable proposal of increasing taxes on the poorest,” the IEJ stated in response to the government’s decision to delay the Budget announcement.
The South African government’s unprecedented decision to postpone its national Budget Presentation to 12 March has sparked a mixed reaction from economic policy experts and civil society.
While the move temporarily halts a controversial 2 percentage point increase in VAT, the IEJ warns that the delay alone is not enough to address the deeper issues plaguing the country’s fiscal strategy.
“We are disappointed that the National Treasury prepared a budget that failed to adequately resource government priorities in
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