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15 Aug, 2019
Eastern Cape Legislature: Mr Bongani Mahlati, MPL’s contribution the budget debate on Cogta
Honourable Speaker Honourable Premier Honourable Members of the Executive Council Honourable Members of the Legislature Government officials Distinguished guests Ladies and gentleman I greet you all in the name of the Mighty Lord Jesus Christ (i) Honourable MEC you said that your priorities have been embedded into the B2B programme that your government adopted in the 5th term to consolidate support to municipalities and traditional institutions. It is only municipalities benefiting; neglecting traditional leaders, because ward committees and councillors are African National Congress (ANC) children. These must not be separated, because chiefs are to be informed of everything happening in their areas. (ii) People had to voice out their grievances because they belong to the municipalities which is ruled by the ANC. The reason why the people are protesting is because you don’t fulfil your promises; you only need them during the election period; making too many promises because you need their votes. (iii) ANC ward committees and ward councillors must not favour their ANC party members. They must service everybody in the community irrespective of party affiliation. (iv) The service delivery is the main concern because of the challenges ranging from water and sanitation to electricity. Some of the municipalities are still using bucket system or have no sanitation at all. (v) Madam Speaker, the MEC is talking about free FBG which consists of provision of free water, sanitation, electricity and refuse removal to indigent households, while our people are crying over paying high rates, access to clean water. Government does not care about rate payers, they are only interested in their taxes. (vi) This “we will” recitation is not nice to our ears; you were singing this recitation since 1994. And I understand the house resolutions and findings are not being implemented. Next year you will be talking the same thing. Your government is government of many dreams yet can’t accomplish any of them. Please don’t dream whilst our country is drowning in the sea. The government needs to prioritise implementation, rather than these empty promises in order to stop these occurring service delivery protests (vii) The Central Supplier Database (CDS) of the Eastern Cape shows an increased number of government officials who are doing business with government, yet the MEC is talking about good governance and says that the Department of Cooperative Governance and Traditional Affairs is at work to fight corruption and maladministration. As the UDM we want see the suspension and dismissal of those corrupt officials found abusing government resources and they must not be paid during their suspension and their case must be finished within four months. And pre-screening is a must, because this will lead to the collapse of our government. The UDM supports the budget. I thank you
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25 Oct, 2017
#MTBSP2017 Mini-budget: Minister Gigaba is reaping what he sowed
Finance Minister Malusi Gigaba’s maiden Medium-Term Budget Policy speech was unimpressive. In fact, it seemed a mere rehash of his predecessors’ old proposals. He was so non-committal, that there is very little hope that we will soon see agencies rate South Africa higher than ‘junk status’. The reaction of the Rand, to his speech, might be a sign of worse things to come. The United Democratic Movement (UDM) notes that South Africa’s current debt stands at R2.32 trillion, whilst the 2020/21 forecast is at a chilling R3,4 trillion. Our debt service cost stands at R146.5 billion per annum, with the projected cost (in just three years’ time) at R223.4 billion. This is cause for serious concern. Minister Gigaba’s lukewarm proposals and vague statements did not speak to this existing, nor the looming – even bigger – financial crisis. The reality of the situation is that Minister Gigaba, and therefore the Country, has become the victim of the mess he created whilst he was still Minister of Public Enterprises. The calamitous management of many State-Owned Enterprises (SOEs), like Eskom and SAA, happened on his watch. Might Minister Gigaba have been non-committal in today’s speech, because he is walking on egg shells, trying to appease both factions of the African National Congress going to their elective congress in December? The UDM however does commend Minister Gigaba on the steps he has taken to improve governance at SAA. We hope that things change for the better. Regarding SOEs, the UDM had warned in the past that Government’s over-commitment in terms of contingent liabilities is a recipe for disaster. Those warnings were laughed off and we see Minister Gigaba and his department scrambling and wanting to channel funds away from service delivery. What’s the use of doing a people-driven budget, if you don’t stick to it? Minister Gigaba’s commitment, to combat corruption and curb wasteful expenditure, has the credibility of a cat conducting a commission of inquiry into the disappearance of mice. Statement by: Mr Nqabayomzi Kwankwa, MP UDM Deputy President and Chief Whip
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17 Feb, 1999
Budget 1999/2000
Statement by Bantu Holomisa UDM President There are no surprises in the Budget presented to Parliament today. It is however a positive sign that the Minister has not deviated from the economic policy embodied in GEAR, which will promote economic confidence in South Africa. Regarding economic growth projections, we are moving in the right direction, but at too slow a pace. The projected economic growth rate of 1,8% for 1999 is simply not high enough to reach the levels of growth we need to create wealth for all South Africans. The UDM welcomes the reduction in company tax from 35% to 30%. This is a positive step towards creating an improved climate for investment. We regard the announcement on tax relief for individuals on the lower income group, as insufficient. The UDM is of the opinion that all tax on income of individuals up to R4 000 per month should be abolished. Only such a bold step will really benefit the poor in our society. The announced tax relief must be put into perspective. Any salary increase will push individuals in a higher bracket. This means that the effective tax burden continues to increase. The tax to income ratio for individuals has increased to record levels. It will therefore be an illusion to indicate that tax reductions are substantial, or that this ratio has decreased. The government expects an increase of 8.2% from individual income tax in the 1999/2000 financial year. Where will they get this revenue, other than from individual taxpayers? A significant announcement by the Minister is the loss by the South African Reserve Bank of R13,3 billion. This loss was incurred in attempts by the SARB to protect the currency, and is for the account of the Government. The question is where is the Government going to find this money and how are they going to pay? This incurred loss emphasises the fact that an urgent reconsideration of our exchange rate management is needed. We urgently need a new approach in this regard. The announced Budget deficit of 3,5% of Gross Domestic Product is twice as high as the average for the emerging world. The UDM is of the opinion that the Budget deficit should be abolished immediately, by way of ruthless cut backs on all unproductive government activities. The Budget deficit currently equates to 12% of total state spending. It therefore will mean to terminate the least essential 12% of government activity. A range of other measures can be considered to support such a step. The UDM is surprised that the Minister has failed to address an accelerated privatisation programme, which can also be used to reduce government debt. We are disappointed that no new and imaginative ideas were produced by the Minister to assist small businesses in South Africa. The UDM believes that enterprise development is the one important factor that can empower South African and that can build our economy. The Minister has failed to announce anything in addition to combat crime, or to restore civil order in South Africa. The impression is created that the Government has no sense of urgency to tackle this most serious problem in our society. In conclusion: the Government has a dismal economic performance over the last 5 years regarding job creation. Today’s Budget showed little evidence that they have the political will to be serious about our most serious socio-economic problem in South Africa.
