Dear MyPE The Democratic Alliance (DA) is pleased to present our Alternative Budget 2021. This Alternative Budget focuses on the roots of South Africa’s economic crisis: too little growth and too much debt. Debt: South Africa’s debt is unsustainably high, and is too expensive. If we do not bring the price of our debt down, which is intrinsically linked to bringing the quantum of our debt down, then we will not avoid a full-blown debt crisis. The consequences of this will be … [Read more...] about 2021’s Alternative Budget
Geordin Hill-Lewis
Stop the back-peddling and blame-shifting, and deliver the vaccine!
Dear MyPE The Democratic Alliance (DA) will not retract or apologise for the statement we issued last week on the Department of Health’s (DoH) suggestion that National Treasury had caused delays in vaccine procurement. We note the statement issued today by the DoH in this regard. We can only conclude that the attempt by the DoH to shift blame has been met with an angry response from Treasury, and they are now trying to back-peddle. We do not care about the petty intrigues of Cabinet … [Read more...] about Stop the back-peddling and blame-shifting, and deliver the vaccine!
Proposed Tax Hikes a Slap in the Face of Hard-working South Africans
Dear MyPE The Democratic Alliance (DA) strongly opposes the tax hikes mooted by Treasury Director-General (DG), Dondo Mogajane, to pay for the Covid vaccine programme. Higher taxes would be a slap in the face of hard-working South Africans. The proposal is callous and shows an extraordinary insensitivity to the financial suffering of so many families right now. The total cost of a comprehensive vaccine rollout is estimated at just over R15 billion at most. This amount would be comfortably … [Read more...] about Proposed Tax Hikes a Slap in the Face of Hard-working South Africans
Was National Treasury the real culprit in vaccine delay?
Dear MyPE The Democratic Alliance (DA) calls on Minister of Finance, Tito Mboweni, to confirm or deny comments by Deputy Director General of Health, Anbay Pillay, suggesting that the National Treasury was the primary culprit in delaying vaccine acquisition. Pillay’s interview with Financial Mail suggests that Treasury was not convinced that vaccines were necessary, that spending on vaccines would “waste money”, and that the “big challenge” was “risk aversion in the Treasury”. The … [Read more...] about Was National Treasury the real culprit in vaccine delay?
Government’s vaccine plans must be released publicly
Dear MyPE Since the outbreak of the Covid-19 pandemic in Wuhan, China late 2019, the global medical fraternity has been working at record speed to develop a safe and reliable vaccine in laboratories across the world. The World Health Organisation’s CoVax Programme, of which South Africa is a participating member, has sought to ensure equitable access for all countries, regardless of their financial status. Countless countries are scrambling to acquire the vaccine. Countless countries … [Read more...] about Government’s vaccine plans must be released publicly
South Africa is currently on a 73% deficit on economic reform progress
Dear MyPE Today marks exactly 508 days since President Cyril Ramaphosa delivered his Presidential inauguration speech at the Union Buildings in which he called for an economic compact to drive growth and economic opportunity. Since then, however, the economy has continued its downward trajectory, with the unemployment rate reaching an unprecedented all-time high. When Covid-19 hit our shores early this year, it delivered the final blow to an economy that was already in deep crisis due to … [Read more...] about South Africa is currently on a 73% deficit on economic reform progress
Mboweni must put his money where his mouth is
Dear MyPE The Democratic Alliance (DA) calls on Finance Minister Tito Mboweni to put his money where his mouth is and issue a formal Treasury Instruction that would require the eight Provincial Treasuries which have not done so, to publish all Covid-19 procurement details in full. Minister Mboweni has already called on Provincial Treasuries and health departments to follow the Western Cape’s lead and publish this information. But he should go further, and issue a formal Treasury … [Read more...] about Mboweni must put his money where his mouth is
A watershed moment for our country
IMF loan requires extra accountability and transparency measures Dear MyPE The International Monetary Fund’s (IMF) approval of a US$4.3 billion loan to South Africa is a watershed moment for our country. This is the first time since before 1994 that we have had to resort to IMF borrowing, and is a profound signal of the frailty of our economy following years of mismanagement, bad policy and corruption. The loan comes amidst growing evidence of a pervasive corrupt feeding frenzy by ANC … [Read more...] about A watershed moment for our country
We need a “Resilience Budget”
Dear MyPE Finance Minister Tito Mboweni must present a budget that builds national resilience and helps South Africa brace for impact. Negligible economic growth and high levels of debt have obliterated South Africa’s ability to engage in counter cyclical measures- to save in times of plenty, and to spend in a time of crisis. In short, South Africa has lost resilience. Businesses are vulnerable, families are vulnerable, government is vulnerable. Many people have lost their lives and … [Read more...] about We need a “Resilience Budget”
Khoza should retract Eskom write-off comments
Dear MyPE The Democratic Alliance (DA) calls on Public Investment Corporation (PIC) Chairman Dr. Reuel Khoza to retract completely or clarify his comments in an eNCA interview today, that the PIC has submitted a proposal to turn R90 billion of Eskom debt into equity. Firstly, we do not believe there is any such "proposal”, at least in any formal sense that is anything more serious than idle chatter. Secondly, if there were such a proposal, it would be patently unacceptable and possibly … [Read more...] about Khoza should retract Eskom write-off comments
What about tax relief for working from home?
Dear MyPE Under lockdown conditions, many taxpayers are required to work from home and have already seen a reduction in their earnings as companies deduct pay for days not worked and not covered by available leave balances, or limit the number of days worked. This is creating financial hardship that requires urgent intervention. The Democratic Alliance (DA) will propose changes to the Income Tax Act to allow deductions for home office expenses for all periods worked at home during the … [Read more...] about What about tax relief for working from home?
Treasury predicts between 3 and 7 million jobs will be lost
What would YOU do if the projected job losses FAR exceed the current death rate? Dear MyPE In a presentation to the Standing Committee on Finance, the National Treasury revealed that it projects between 3 and 7 million job losses as a result of a protracted lockdown. This is a staggering prediction, far worse than anyone previously thought. It is becoming increasingly likely that the human, social and economic cost of this protracted lockdown will be far worse than previously considered, and … [Read more...] about Treasury predicts between 3 and 7 million jobs will be lost
Tabling of emergency budget welcomed
Dear MyPE On 28 March 2020, a day after Moody’s had downgraded South Africa’s credit rating to junk and the Covid-19 had started wreaking havoc in the economy, the Democratic Alliance (DA) called for the tabling of a new emergency budget. This was necessary because none of the revenue and growth assumptions on which the February budget was based were still valid. Revenue and growth projections had collapsed. We, therefore, welcome the announcement by Minister of Finance, Tito Mboweni, … [Read more...] about Tabling of emergency budget welcomed
Bank’s Business Loan Payment Holiday Welcomed
All banks should match Standard Bank’s business loan payment holiday Dear MyPE The announcement by Standard Bank of a 3 month payment holiday on all up-to-date business loans is very welcome. The DA calls on all other banks to match this relief intervention as soon as possible. The DA has called for a loan forbearance programme since the national disaster was declared, and we are pleased that this request has been heeded. We now need to see this rolled out by all other banks and … [Read more...] about Bank’s Business Loan Payment Holiday Welcomed
More economic support needed after restaurant restrictions
DA proposal on UIF reprieve approved Dear MyPE The Democratic Alliance (DA) welcomes the government’s positive response to one of our proposals, allowing businesses to skip Unemployment Insurance Fund (UIF) payments for the coming months, and expanding UIF coverage to better protect affected workers. Small and medium enterprises pay tens of thousands of rands to the UIF and this reprieve will be valuable cash flow support for these businesses during this crisis. Even so, South Africa … [Read more...] about More economic support needed after restaurant restrictions
