The national budget, to be announced on 24 February 2021, is of the utmost importance to get South Africa back on the right track as regards economic growth and recovery, especially after the damaging effect that ANC policy and more recently, the Covid-19 lockdown have had on every person in the country.
Thus, the FF Plus would like to hear, among other things, tax relief measures announced for individuals and business enterprises to stimulate economic growth. That is the only way to move forward with economic recovery.
In addition, private spending must be stimulated to bring about growth, which will lead to job creation.
What the FF Plus does not want to hear is any more lifelines to public enterprises. It is time to either close or privatise unsustainable public enterprises.
Further state expenditure on luxuries is not acceptable and feasible measures to cut back on state expenses must be included in the budget.
The government’s unsustainable wage bill must be brought back under control. This must, however, be done while the essential and critically important vacant positions are filled so that service delivery can continue.
Real structural reforms must also be part of the minister’s budget speech.
That includes addressing the energy crisis, tax reform as well as abolishing administrative red tape that hampers conducting business and that makes it difficult to start and / or expand businesses.
Infrastructure spending is imperative for economic development, including spending on water infrastructure.
Tariffs and taxes, like the sugar tax, should be temporarily abolished for now.
At the moment, South Africa cannot afford any form of wealth tax. It will cause professionals to take their money out of the country.
And South Africa has immense debt, particularly the public enterprises. No plan or strategy can make it disappear and something like increased taxes will only make the problem worse.
Only healthy economic principles, without needless government interference, corruption and squandering, can save our country’s economy.
Read the original article in Afrikaans by Wouter Wessels on FF Plus