By Jabu Rakwena
AZAPO Department of Publicity and Information (DPI)
AZAPO was correct in her prediction that very little can be expected from the budget speech.
This prediction was also premised on our understanding that the mixed cocktail called the GNU will selfishly guard their own interests instead of advancing the interests of the poor.
In her analysis of the budget speech, AZAPO noted that:
1. VAT increase is unwarranted as it flies in the face of the poor.
2. This is a general tax that is paid by the poor and avoided through refund by corporates.
De facto the increase is an increase on Personal Income Tax. The citizen who is isolated, individualistic and
unorganized is bludgeoned indirectly or directly till the last cent falls from the pocket.
3. Although there is talk about “a bold and pragmatic approach”, several allocations are to deal with past incurred expenditure, and most are still plans that we are doubtful they will come to fruition.
4. The budget speech can now be liked to an “automatic voice messaging”. There are no surprises, same voice, same message all the time. That what you want at the time you cannot get.
Leaving a message (part of the plan) does not guarantee you will get what you want.
5. A capable state is song of the unwilling to the doubtful. GNU has no interest in the welfare of the citizens, but their own.
The citizens are kept alive by a false persistent hope.
6. A government with over 76 percent debt ratio should not be so hamstrung as the ANC today.
Globally there are far worse ratios in Japan, Egypt and even the US itself.
The anxiety of investors is that lending to the ANC led GNU only means throwing money down the drain.
7. There is no sign of “maturing and resilient democracy” when it’s the elites who decide not how much to improve the lives of people, but the extent of pain they can tolerate.
Any amount of VAT increase today is not only ill advised, but also suicidal to the economy and a deliberate policy of manufacturing poverty.
8. Building buffers amid grim economic prospect is self-delusional. Unrealistic and a wakeup call that as a country we are faced with the abundance of ineptitude in the face of massive challenges.
9. It’s therefore an understatement to say the budget disappointed, it confirms our fears of lack of vision, whilst paralysing our hopes of something big-push and dramatic.
10. Water, electricity, education, and crime are the undeniable scourges of our society. Nothing is permanent and sustainable. However huge funds are deployed every year whilst the real results are woeful and minimal, if not absent.
11. AZAPO advocates that land and farms be allocated to black entrepreneurs who are serious about working the land.
This is a low handing fruit. Make NYDA, and SITAs work for the people and intended beneficiaries.
12. Remove queues at tertiary institutions, at SASSA collection points.
13. Eradicate the pit dugout toilets.
14. Stop the privatization of State assets. Stop these one-sided so-called partnerships with private sector through PPPs, where the state is responsible to incur the risk whilst profits are handsomely delivered for the petite- bourgeoisie.
This is a legitimate transfer of state wealth for the benefit of risk avoiders.
15. Ring fence the new infrastructure bond. Its implementation must be based on tight conditions through a rigorous process.
16. Why Corporate Income Tax remains a holy grail is in itself a mystery of enigmatic proportions.
If only this government had a fraction of the sympathy that it approaches CIT with, the ordinary man and woman of the country would walk around proud, patriotic and ensuring sympathy for the government.
17. With doctors now unemployed, it is clear that the future remains etherised on the table and death is impending.
Not even expenditure of R2, 4 trillion can lift this economy from its doldrums.
This is money given freely to provinces without demanding performance. It is now urgent that these extra layers of governance should be removed completely.
We are facing tax radiation. They had wanted to nuke us at an instant. There is no change of heart on their part but have figured a way to kill the individual with its applause.
A lot of our challenges, reflecting in the R390 billion being paid as debt service costs, is self-inflicted. Without solid governance ethic even if we halved it, there won’t be material benefit and transformation.
Governance is a precondition for development.