By Rachel Mohamed
The upcoming budget speech, scheduled for March 12, comes after an unprecedented delay. A major point of contention has been the proposed 2% increase in VAT, which has sparked considerable debate within the governing coalition. Many members of the coalition oppose this decision.
One member, the Democratic Alliance (DA), has suggested alternatives for the upcoming budget. They propose avoiding any tax increases and instead focus on further cost-cutting by targeting “excess” government spending, along with concrete plans to support the business sector.
Speaking on VOC’s News Beat show, Professor Waldo Krugell, Professor of Economics at the North-West University stated, “They don’t put exact numbers to this to say how millions would come out from cutting on their advertising or catering.” “I think it’s a bit tricky to quantify that, but I suppose they do have some numbers in the background.”
“I think they are making some sensible proposals, and there’s a little bit of facts still to cut in government spending.
Krugell further emphasized that the “government needed a proper review of all spending to not cut to the bone.”
“The key here is to have a close look at programs, and the departments and look at some major savings along the line but is not straightforward.” “The key to remember is that the minister needed some additional money simply to fund extra spending and they don’t need tax to make the books balance.”
Listen for the full interview:
VOC News
Photo: Pixabay
