Announce a ‘conditional’ R585 Basic Income Grant, remove VAT on some foods, freeze certain workers’ wages and keep the taxpayers’ estimated R1.68 trillion revenue kitty away from Eskom’s state of disaster. These are some of the suggestions put forward by the DA in its ‘alternative budget’.
CAPE TOWN – Announce a “conditional” R585 Basic Income Grant (BIG), remove VAT on some foods, freeze certain workers’ wages, and keep the taxpayers’ estimated R1.68 trillion revenue kitty away from Eskom’s state of disaster.
These are some of the suggestions put forward by the DA in its press briefing, titled the “Alternative budget proposal”.
The DA suggested that Finance Minister Enoch Godongwana’s speech – which takes place at City Hall on Wednesday – can only be sensible if he anchors it largely on the DA’s policies.
DA MP and spokesperson on finance Dr Dion George said Godongwana has to focus on stimulating economic growth and an environment that investors will find attractive.
He said their proposals were based on a comprehensive economic policy, which aims to halve unemployment by 2030.
He proposed that a “conditional” R585 monthly BIG, which he described as “doable”, should be given to the unemployed.
He said their policy imperatives include, among others:
- Establishing a foundation for sustainable growth.
- Boosting the energy sector and providing pragmatic solutions to rolling blackouts.
- Stabilising the fiscal environment and reducing public debt, supporting vulnerable South Africans, and bolstering corruption-fighting institutions.
DA MP Ashor Sarupen rejected unions’ demands for above-inflation 10% wage increases and called for freezing wages (increases) of workers who are not covered by “occupational-specific dispensation”, such as head office managers, which would “save R140 billion”.
George suggested that Godongwana cultivate a savings culture through tax incentives such as tax-free interest on savings accounts, higher limits on tax-free savings, raise the threshold on taxes on interest earned to R500,000 and increase the yearly tax-free savings limit to R100,000.
He said the government should stop charging value-added tax on chicken, beef, tinned beef, margarine, baby food, tea, coffee and soup powder, among other foods.
George called on Godongwana not to shift a cent towards Eskom’s state of disaster.
George labelled cadre deployment and Black Economic Empowerment as failed policies.
He said the continued bailouts to state-owned entities (SOEs) are largely used to service their debts instead of effecting economic reforms. He suggested that SOEs should be privatised.
George echoed President Cyril Ramaphosa’s statement in his State of the Nation Address in which he said he expects Godongwana’s speech to address the country’s waning infrastructure.
George said the government should sell its development bonds and use the funds to build roads, bridges, hospitals and financing education and health care.
He suggested tax rebates in the form of a 100% deduction for the cost of installed solar panels.
DA MP and social development spokesperson Bridget Masango said they won’t agree to any form of tax increases to fund the contentious National Health Insurance.
