Budget: UASA expresses concern over the postponement of the National Budget Speech
UASA said they noted with concern and dismay the postponement of the National Budget Speech by the Minister of Finance, Enoch Godongwana, on Wednesday afternoon.
Abigail Moyo, spokesperson of the trade union UASA, said that the Budget is the first under the Government of National Unity (GNU), which means Godongwana had to consider not only the African National Congress (ANC) and its alliance but also the coalition parties that are part of the GNU. “The decision to postpone – an unprecedented move in democratic SA – followed the GNU’s failure to agree on hiking the VAT rate from 15% to 17% as the Budget proposed and the Cabinet failed to sign it off earlier today.
Godongwana said the Treasury had proposed to raise the VAT rate to:
Fund public sector wage increases for our civil servants
Expand early childhood development opportunities for our children
Retain the teachers, doctors, and essential frontline workers who serve our communities
Revitalise our commuter rail system to serve working-class families better
Provide above-inflation increases to social grants for our most vulnerable.
Moyo added that while addressing our country’s economic and financial situations with viable solutions is vital, UASA believes that increasing VAT is not practical for consumers already struggling with the cost of living crisis. “The government must stop resorting to emptying the pockets of fellow South Africans each time it tries to find a way out of its financial mess. Corruption and mismanagement of funds remain the biggest downfall of our government and economy, which requires urgent attention.”
Moyo said that the government must find ways to downscale unnecessary expenditures to salvage the economic crisis that has befallen our country. “Taxpayers’ money is not the only way out of every challenge. The Budget Speech will be tabled on 12 March.”
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