Budget 2025: DA says R60bn can be found elsewhere, tough love needed for public servants

The Democratic Alliance (DA) argues that political will — not tax increases or more borrowing — is needed when tabling the 2025 budget.

Finance Minister Enoch Godongwana was forced to delay his budget speech last week after a proposed 2% increase in value-added tax (VAT) faced backlash from political parties within the government of national unity (GNU).

The speech is now scheduled for 12 March, as discussions continue within Cabinet and the GNU’s clearing house mechanism on an alternative budget.

DA’s budget proposals

Speaking at a media briefing on Tuesday, DA national spokesperson Karabo Khakhau warned that raising debt and taxes would hinder economic growth and job creation.

“A 2% VAT hike is not ridiculous, but it is anti-poor and anti-middle class,” she said.

“We want an anti-tax, pro-jobs, and pro-growth national budget.”

DA MP Mark Burke outlined the party’s six budget proposals, claiming that the party offers a responsible alternative without increasing taxes, taking on more debt, or cutting essential services.

Burke highlighted that the R60 billion in new expenditure the National Treasury needed to account for was just 3% of the overall R1.9 trillion budget.

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According to the DA MP, this amount can be “easily sourced from failing, failed and underperforming programmes and sub-programmes.”

“South Africa doesn’t have a revenue problem; it has a problem prioritising spending on programmes that drive growth and, in turn, job creation,” he said.

Burke criticised the government’s ongoing approach, saying that increased spending has not improved citizens’ lives.

“Despite an ever-growing budget, lives are getting worse. The ANC solution is to spend more, borrow more, and tax more with zero focus on efficiency. It’s insane. We’re doing the same thing again and again but expecting different results.”

Watch the briefing below:

Cost-cutting measures

Burke stressed that the country’s tax base was too small to absorb further tax increases without harming private sector investment and the economy.

“Tax increases, including a mooted wealth tax, will chase away investment, shrink our tax base, and ultimately, cause damage to the economy,” he said.

Instead of raising VAT, the DA suggests cost-cutting measures, including a 33% reduction in travel and catering expenses across departments, a 12-month hiring freeze for all non-essential government positions and a national audit of ‘ghost employees’ to eliminate fraudulent salaries

The party also proposed fast-tracking logistics and trade reforms, setting deadlines for the concession of freight rail and major ports like Cape Town and Richards Bay.

READ MORE: ‘We are not scared of the DA’: Mashatile claims it was ANC MPs that wanted budget reassessed

Burke further called for a three-month emergency spending review to identify wasteful programs, which could free up R58 billion.

“This will allow the reallocation of funds to essential public services such as healthcare, policing, and education.

“It will also allow the ability to fund legally mandated commitments, such as the R7 billion public sector wage increase, without tax hikes,” he said.

Additionally, he suggested using adjustment budgets throughout the year to reallocate funds as inefficiencies are identified.

“There will be many, so no tax hikes are needed. Furthermore, conduct at least a nine-month deep dive to review outdated expenditure,” Burke added.

Increasing revenue without tax hikes in 2025 budget

Rather than increasing taxes, Burke said South Africa should improve tax compliance and unlock state assets.

By increasing tax compliance from 63% to 67%, the government could generate R60 billion annually, according to the DA MP.

Selling under-utilised land could bring in an estimated R10 billion per year, he added.

READ MORE: Budget dispute is forcing ANC to consult – Will DA have more influence in GNU now?

Burke emphasised the need to protect essential services, ensuring no cuts to frontline healthcare workers, teachers, the police, or social grants.

“We don’t need lip service; we need service delivery and reforms. And we need them actioned now so that we don’t sit here again next year with the same tired narrative, wondering why South Africans are worse off,” he said.

Tough love for public servants

Moreover, Burke rejected suggestions that the budget would be austerity-driven.

“We don’t have to buy into that narrative. We all know the problem, we all know how much fat inefficiency, corruption, and maladministration is baked into our current governance system,” he said.

He dismissed the idea that essential services should be cut if the government does not implement the proposed VAT hike.

On public wage increases, the DA MP stressed that “tough love” should be applied not only to state-owned entities (SOEs) that frequently seek bailouts but also to public servants.

“There’s all sorts of bad practice that’s become an entrenched practice over time, so we see above inflation increases year-over-year.

“In addition, people who have been in the state service for more than five or 10 years in some cases automatically get a 1% increase on top of those above inflation increases, and it’s ruining our fiscal strategy.

“It makes South Africans upset that a Parliament cleaner in earning more than a teacher in a rural town in South Africa. These things make no sense,” he said.

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