27 February 2014
Budget is "business as usual".
It contains all elements which explain
constrained economic growth, the global financial outlook and
its consequences on South Africa.
Areas of concern such as the lack of
management and accountability at all levels of government, the
volatile situation in the labour sector, and the need for a
productive and disciplined civil service workforce have been
As the IFP we believe there must be increased
vigilance on spending at all levels of government. This one
trillion rand budget has been distributed as follows: 48% to National Government
departments, 43% to Provincial Government departments and 9% to
We welcome the fact that there is tax relief
to be provided in the form of bracket creep. Further
incentivisations for small and medium enterprises are also
welcome. Our tax revenue system continues to be about the best
in the world.
Debt servicing costs of R115bn per annum are
alarmingly high. The increasing number of social grant
recipients is cause for concern. Projections are that they would
reach almost 16 million this year. We question whether this will
be sustainable in the medium to long term.
Having said this, the minimal increase to old
age pensioners is cause for concern, given the knock on effects
the increased price of fuel would have on their ability to
purchase household goods.
PUBLIC SERVICE WAGE BILL - R450bn
All in all, the IFP welcomes the announcement
in this Budget, though we remain seriously concerned about
wasteful, fruitless and unauthorized expenditure as all levels
of government. Rampant corruption needs to be contained.
Taxpayers deserve value for money and honesty
at all levels of government and administration.
IFP Spokesperson on Finance, Mr Narend Singh MP, 083 788 5954
For media enquiries:
Contact IFP Parliamentary Media Liaison
Officer, Ms Boniswa Tiwe, 072 497 1252