Africa-Press – South-Africa. The DA’s alternative medium-term budget proposes the privatisation of Eskom, doing away with BBBEE and halting any further funding of state-owned enterprises (SOEs).
The opposition political party presented its version of the perfect budget on Tuesday.
The DA said if it was in charge of the country’s finances, its economic policy outlook plan would stimulate growth, create jobs and help solve the country’s energy crisis.
Finance Minister Enoch Godongwana will present the Medium-Term Budget Policy Statement for 2022 on Wednesday.
This budget review will be delivered in a climate of low economic growth and rising interest rates which are aimed at curtailing inflation.
ANALYSIS | What to expect from this week’s medium-term budget
Not only has the economic climate proved challenging, but continuous load shedding by Eskom has devastated businesses and citizens.
DA MP Dion George said the government must privatise Eskom to save the battling SOE.
The party said it believed the government would better manage a privatised Eskom.
George said:
The DA also believed the money could be better spent elsewhere rather than further bailouts for SOEs.
The government has spent billions providing relief to SOEs, particularly Eskom, at the expense of other government departments.
“Continuous bailouts to SOEs have financed failing entities’ debt services, salaries and current spending on suppliers. Apart from the contribution to employee consumption, there is no perceivable value added to growth and development in these entities’ sectors.
“Minister Godongwana must therefore remain firm in his pledge not to reprioritise budget items to bail out failing SOEs,” he said.
The DA called for no increases in taxes, whether fuel-related or income-based.
The party also called for the expansion of the food basket to include chicken, beef, baby food, tea, coffee and soup powder.
George said the government had to reduce its deficit over the years because it had ballooned, to help fund further increases to the public sector wage bill.
The DA has long believed policies such as broad-based black economic empowerment and strict labour regulations hurt investment and possible growth.
“Our economy is in crisis, and households are now facing the devastating consequences of decades of government mismanagement of the public finances. The cost of living is spiralling upward while the government remains fixated on its hopelessly failed economic model.
“There is no silver bullet, and endless possibilities surround the South African economy. Suppose we do not divert from the disastrous path the government has paved. In that case, we will never see the growth rates we are so capable of reaching, and the people of South Africa will never become everything that we are capable of becoming,” George said.
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