ANC’s financial dilemma: Revenue shortfall looms at R57 billion

There must have been some ideological tussles behind the scenes in recent months as Finance Minister Enoch Godongwana and his Treasury advisers had to convince the ANC that there is no pot of gold at the end of the rainbow.

There is, in reality, a black hole of a shortfall in revenue of almost R57 billion, which threatens to suck up any hope of a financial recovery. And though Godongwana may have come from union roots himself, the fiscal realities cannot be avoided.

Some more rabid capitalists might argue that the bankrupt state of the state is due to implementation of large-scale social projects like social grants and subsidies for university students.

But is the fact we’re perilously short of money due to the ANC’s failed social experiment, or the weapons-grade looting which the party and its friends have embarked on for almost 30 years?

Godongwana won’t have pleased the Leftists in the tripartite alliance with his commitments to cutting government spending and trimming the bloated civil service.

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However, in a nod to the power of the unions and to the power of the vote held by those in the ANC’s sheltered employment, the minister said there would be no cuts in the vital areas of policing, crime and education.

Pity there was no mention of improving service in all three of those ailing sectors.

Even though you shouldn’t be able to extract blood from a stone, Godongwana is going to have a go, with his announcement that there will be R15 billion of new taxes in next year’s budget.

The fact that South Africans are already some of the highest taxed people on the planet still seems to elude our ANC masters, though.

We could save a chunk of cash by firing ministers and their VIP protectors. But, somehow, we don’t think that’s likely.

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