By Simon Nare
The ANC has urged for cool heads in addressing the intricate and sensitive aspects of Finance Minister Enoch Godongwana’s proposed budget, which includes a 0.5% percentage point increase in Value Added Tax aimed at addressing the tax deficit.
Parks Tau, a member of the Economic Transformation Committee and the Trade and Industry Minister, told journalists during a media briefing at Birchwood Hotel in Boksburg, just outside Johannesburg, that navigating the complexities of the budget is crucial.
Tau said that while the government must review its expenditure programs, it also needs to determine how to generate the necessary revenue to fund them.
“Parliament is considering the proposals with regards to the revenue proposals that would include the 0.5% VAT increase. This report will be provided to parliament considers the report and the way forward,” said Tau.
“But equally, when addressing revenue, cutting on the revenue side impacts expenditure, requiring tough prioritisation decisions. It becomes clear that the budget also extends to economic development.”
He added that the proposed allocation of R1 trillion infrastructure project planned for the Medium-Term must also be funded from the same budget, requiring a careful balance to accommodate all priorities.
The proposed allocation would be focused on roads, ports, rail and energy, key to unlocking job creation, industrialisation and economic integration.
Tau said that the government has been urged to conduct a comprehensive review of the budget without jeopardising key programs.
He added that a commitment had been made to initiate a process to thoroughly address the challenges arising from the budget.
“I think that when you talk budget, it is important that you talk about the revenue side in as much as you talk about the expenditure side. What are the key areas of investment that the country needs to make,” said Tau.
“Certainly, it has been indicated in the statement the commitment to ensure we are able to address the plight and needs of the poor and consolidate in essence what constitute the social work. This would include pre-paid water, electricity and grants across the board that includes grants in relation to old age.”
Tau admitted that the ANC has also reached out to political parties which were not part of the Government of National Unity (GNU) to seek support for the approval of the budget by Parliament.
He argued that the party has never closed the door on any political party when it started talking to parties to join the GNU after the elections failed not to produce a majority winner.
“We believe that at the moment in this country, we need all voices on board to define where we are going collectively as a country to deal with challenges that we confront,” he said.
“We have never stopped talking to anybody whether formally or informally. We have never stopped talking to anybody. Some of them have raised issues that they still want to discuss. And we have kept our doors open even when it relates to the passing of the budget.”
Tau said the ANC was engaging all the political parties in this regard because it wanted to make sure that it gets the maximum support to pass the budget.
He added that the team tasked with those negotiations was in ongoing engagements with political parties and this could continue until the last minute when the budget would have to be tabled in the National Assembly.
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