Budget must cut government spending: DA

The DA will reject any tax increases should these be announced in the budget to be tabled on Wednesday‚ as they would not be in the interests of South Africans nor of economic growth‚ party leader Mmusi Maimane said on Tuesday.

Speaking at a media briefing to announce the DA’s budget expectations‚ he said that the party would be looking to the budget for initiatives to grow the economy‚ cuts to government expenditure to release funds for service delivery and the protection of the poor.

DA deputy finance spokesperson Alf Lees said an increase in VAT‚ as speculated‚ would be disastrous for the poor.

Maimane said the DA wanted the budget to focus on an infrastructure build programme as a way to stimulate economic growth that should have cities at its heart. The budget should also outline plans to offer jobs and training for the youth‚ he said.

He highlighted three major constraints to fiscal manoeuvrability‚ namely the public sector wage bill‚ debt servicing costs and high expenditure on social welfare. Maimane said these constraints would limit what the finance minister could do in the budget‚ especially in an environment of low growth and low tax revenue.

The DA was firm in its rejection of any expenditure on a nuclear programme and on the national health insurance scheme in its current form.