The poor are set to suffer due to the poor management of the country’s fiscus over the past nine years under former president Jacob Zuma, Democratic Alliance leader Mmusi Maimane has said.
Responding to the budget tabled by finance minister Malusi Gigaba, who announced a one percent increase in value-added tax (VAT) – the first such hike since 1993 – Maimane said he would have liked to hear more on how government was going to cut the executive and sell off state-owned enterprises.
“No government can tax itself to prosperity,” said Maimane.
“Poor people are going to pay with increases in fuel, increases in basic food prices…they are going to pay for it as SOEs (state-owned enterprises) are going to depend more on State bailouts.”
Maimane said if he was finance minister he would have cut Cabinet by more than half to only 15 ministries, saving close to R5 billion.
He added some SOEs like South African Airways could have been sold off and the money generated gone towards effecting tax cuts for the manufacturing sector to boost job creation.
“The facts on the table are its going to be hard for poor people and it is a consequence of poor management over the last 9 years.”