Finance minister Enoch Godongwana will have the weight of the world on his shoulders when he delivers his midterm budget speech in parliament on Wednesday, with several demands being made.
Godongwana will speak at a time when South Africa faces load-shedding, water restrictions and fuel shortages that have threatened to cripple tourism, travel and the economy.
He is set to announce interventions and policies to try to address the many challenges the nation faces while trying to revive public confidence in government.
While his speech may have been drawn up weeks in advance, there have been calls for him to address several urgent matters in his address.
Here are some demands and expectations political parties, civil organisations and bodies have made ahead of the speech:
CHEAPER FOOD
The DA called on Godongwana to announce more zero-rated food items as many South Africans struggle to put food on the table.
DA MP and shadow minister of finance Dion George proposed VAT be reduced on items such as chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee and soup powder.
“For all people who are buckling under the enormous rises in food prices, we are looking to minister Godongwana to address the nation on Wednesday and provide food cost relief. It is a simple ANC government intervention that would have a great impact on nutrition for millions of people,” he said.
The DA memorandum also demanded the R50m the ANC government intends to donate to Cuba be cancelled and “spent here on alleviating hunger and poverty”.
7 things South Africans want the finance minister to announce in his budget speech
Image: Esa Alexander
Finance minister Enoch Godongwana will have the weight of the world on his shoulders when he delivers his midterm budget speech in parliament on Wednesday, with several demands being made.
Godongwana will speak at a time when South Africa faces load-shedding, water restrictions and fuel shortages that have threatened to cripple tourism, travel and the economy.
He is set to announce interventions and policies to try to address the many challenges the nation faces while trying to revive public confidence in government.
While his speech may have been drawn up weeks in advance, there have been calls for him to address several urgent matters in his address.
Here are some demands and expectations political parties, civil organisations and bodies have made ahead of the speech:
CHEAPER FOOD
The DA called on Godongwana to announce more zero-rated food items as many South Africans struggle to put food on the table.
DA MP and shadow minister of finance Dion George proposed VAT be reduced on items such as chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee and soup powder.
“For all people who are buckling under the enormous rises in food prices, we are looking to minister Godongwana to address the nation on Wednesday and provide food cost relief. It is a simple ANC government intervention that would have a great impact on nutrition for millions of people,” he said.
The DA memorandum also demanded the R50m the ANC government intends to donate to Cuba be cancelled and “spent here on alleviating hunger and poverty”.
DA urges Godongwana to make 'meaningful and fundamental' cuts at midterm budget speech
THE R350 GRANT TO BE INCREASED
Johannesburg-based think-tank the Institute for Economic Justice called for the R350 social relief of distress (SRD) grant to be increased to the food poverty line of more than R660 a month.
TimesLIVE reported some economists believe a temporary extension of the grant could be funded by revenue from mining taxes.
A DECISION ON THE FUTURE OF E-TOLLS
Godongwana is expected to announce cabinet’s decision on E-tolls in Gauteng, with the Automobile Association saying government cannot further delay making a formal announcement on the controversial project.
Future of e-tolls expected to be heard on Wednesday
SCRAP FUEL TAXES
The DA also called for the scrapping of high fuel taxes as motorists feel the pinch at the pumps.
“The memorandum I handed to the finance ministry also demanded the scrapping of the unnecessary and exorbitant taxes on fuel, which inflate the price of fuel by almost R6 a litre,” George said.
IMPROVED HEALTHCARE AND BASIC SERVICES FOR THE POOR
Director of the Rural Health Advocacy Project, Russell Rensburg, said government needs to invest more in improving healthcare services to the poor.
He said primary healthcare received only a third of the total health budget and should be made a priority.
“This is not to say hospitals must not get funding. What we need is a more vigorous conversation around how we allocate funding and what happens in our hospitals. Where is the wastage? This budget comes at a time when we need to reflect on our values. We need to start thinking and taking back our agency and realising politics is shaped by public discourse, it is shaped by participation,” Rensburg said.
Put human rights first, pro-poor advocates urge Godongwana before mini-budget speech
MORE FUNDING FOR EDUCATION
Equal Education researcher Jane Borman said Godongwana must address deep inequalities in schools that reflect apartheid’s racial divide.
Analyst Daniel McLaren expressed concern over budget cuts that disadvantaged pupils attending public schools.
“Pretty much every year for the past 10 the amount of money we’re spending on public schooling per pupil has gone down. In particular the cuts have been around the wage bill, which has been a focus of government, and we are seeing this on the ground.
“We have been seeing this for the past few years in increasing class sizes, well above the intended average. We are seeing effects on quality and the provision of basic education as a result.”
CLARITY ON ESKOM’S DEBT AND LOAD-SHEDDING
Economists predict Godongwana may announce relief for Eskom, including taking on part of its huge debt.
They said doing so would allow the utility to become more financially stable.
“Anything less than R150bn would be deemed insufficient,” said Isaah Mhlanga, chief economist at Alexforbes.
Medium-term budget: Eskom debt plan in focus
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