As the South African budget looms, DA finance spokesperson Mark Burke lays out the party’s firm stance—no new taxes and a radical plan to slash R30 billion in wasteful spending. But with the ANC’s historical resistance to spending cuts, will these proposals see the light of day?
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BizNews Reporter ___STEADY_PAYWALL___
As South Africa braces for the tabling of the national budget on March 12, the Democratic Alliance (DA) has drawn a firm line in the sand: no new taxes and an aggressive plan to cut wasteful government spending. DA finance spokesperson Mark Burke, in a recent interview with BizNews’ Bronwyn Nielsen, emphasized that South Africans cannot afford further tax burdens, especially the proposed 2% VAT increase that has sparked national outrage.
A six-point plan to fix the economy
Burke outlined the DA’s six-point plan to navigate the country’s fiscal crisis, with a central focus on efficiency rather than increased taxation.
- No more taxes: The DA strongly opposes additional taxes, including VAT, personal income tax, and corporate tax. “South Africans are already struggling to make ends meet,” Burke asserted. “Further taxation is inconceivable.”
- Improve SARS collection: Instead of burdening taxpayers further, the DA suggests investing R3.5 billion in SARS to improve revenue collection, which could generate over R60 billion—far exceeding the anticipated revenue from a VAT increase.
- Open the economy: The party advocates for deregulation, the concessioning of ports and railways, and broader participation in the energy sector to reduce business costs and stimulate growth.
- Spending review sprint: The DA proposes a rigorous three-month spending review to identify areas of wasteful expenditure that can be cut immediately.
- Executive trimming: With 32 ministers and 43 deputy ministers, Burke argues that the government is excessively bloated, costing millions that could be redirected to more pressing priorities.
- Ending costly misallocations: The party points to wasteful expenditures such as the National Skills Fund (R5 billion), the war effort in the DRC (R1.6 billion this year and R5 billion over three years), and failing training authorities like the CETAs (R19 billion).
Can R30 billion in cuts be achieved?
After just one week of analysis, Burke claims the DA has already identified over R30 billion in potential spending cuts. The list includes slashing redundant government agencies, reducing the number of ministers and deputies, and eliminating inefficient state-owned enterprises. “There is so much fat built into the system,” he said. “The governance arrangement is inefficient, and there is significant wastage.”
Burke also pointed out a staggering fact: South Africa’s current budget is three times larger than Nelson Mandela’s government’s inflation-adjusted budget in 1995, despite producing significantly worse outcomes. Even under Thabo Mbeki, the government operated on a budget half the size of today’s, while still delivering social grants and essential services more effectively.
The political roadblock: ANC resistance
While the DA has put forward clear-cut solutions, the real question remains: will the ANC budge? According to Burke, the ruling party is struggling to adapt to its new reality as a coalition partner, holding only 159 of 400 seats in Parliament. “They need to emotionally adjust to the reality that they no longer have full control,” Burke stated, warning that the ANC’s tendency to weaponize time and push negotiations to the brink could create further uncertainty.
The battle against a wealth tax
Burke also dismissed the idea of a wealth tax as a “radical idea with no viability.” He argued that such a tax would trigger capital flight, pushing more wealth out of the country instead of increasing revenue. “If you want a clear-cut recipe for capital flight, impose a wealth tax,” he warned, adding that the DA has no tolerance for the idea.
What happens on March 12?
With the budget speech looming, tensions are high. If no agreement is reached, mechanisms are in place to prevent a complete government shutdown, including temporary expenditure caps. However, the DA remains hopeful that the ANC will come to the table for genuine negotiations.
“Across the board, South Africans are telling us: ‘Thank you for standing up. Please keep fighting,’” Burke said. And that, he assured, is exactly what the DA intends to do.
Read also:
- BN Briefing: DA finds R30bn in one week to cut ahead of Budget; Roodt: Murmurs of a 0.75% Vat hike
- Why Afrikaner leaders went to Washington, and what they achieved – Connie Mulder
- By-election trends: Good news for Gayton; bad news for JZ, Julius; the DA’s “rocky road”; and the ANC’s big Gauteng worry…
