DUE TO tax revenue falls and expenditure increases - driven by bail-outs to struggling state-owned entities - national debt is heading in excess of 70% of GDP.
And to compound matters you must pay for the controversial e-tolls. Playing to the gallery Mr minister of finance Tito Mboweni.
Mboweni’s MTBPS (mid-term budget policy statement) showed that the government would be spending a whopping R796bn on its debt, which is now at R3-trillion and will balloon to R4.5-trillion in the next three years.
He also indicated SOEs such as Eskom will receive bail-out but with stringent conditions such as paying back the loan, with set-time frames.
All these big figures to an ordinary person whose unemployed or swimming in poverty means zilch. They need change and they demand it NOW!
Theirs is how will the economy benefit them, how will SMMEs get business opportunities and those who are lucky to be procured- why does it take long to settle payment, amongst others.
He also said the cost of official cars will have to be capped at R700 000 (bye, bye BMW X7), cellphone allowances would be capped and domestic flights will now be confined to economy class. And no more daily travel expenses, either.
On the other hand, labour federation Cosatu described Mboweni’s MTBPS as “unacceptably weak”, saying it was a direct attack on workers.
Cosatu said the policy statement did not hold accountable private sector companies on how they should spend billions of rands received through the Youth Employment Service (YES) programme.
“Billions have been given to the private sector through the Employment Tax Incentive YES! Programme and industrial and manufacturing subsidies.
“Yet there is no report from government on how these companies have utilised this generosity or how many jobs have been saved and created. Yet many of these companies are retrenching workers or simply recycling existing jobs to access these subsidies,” said Matthew Parks, Cosatu’s parliamentary coordinator.
A response from National Youth Development Agency would be ideal on how they plan to improve and empower youths in the country, through their outreach programs.
As for minister Mboweni’s speech- it’s sounded like a tired, old record. Yes, you ain’t ‘Father Xmas!’
Image (Finance minister Tito Mboweni- is clutching the straws and the public ain’t happy at all).