MEDIA STATEMENT BY THE
INKATHA FREEDOM PARTY


The Budget - Nothing Earth Shattering About Announcement

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 highlighted.

 

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 municipalities.

 

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.

 

 

 

Issued by:

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