The SACP welcomes the economic policy strategic shift confirmed in today Budget Speech, and broadly outlined in the State President's opening of parliament address.The shift from the so-called macro-economic fundamental to investment in infrastructural development, urban renewal, job creation and other productive sectors of the economy is highly welcomed. This finds expression in the R6 billion set-aside for infrastructural development over the next three years.
We also welcome the increase in the Skills Levy to one percent of the wage bill, this marks a growing commitment to ensuring the development of the South African workforce.
We welcome the Minister of Finance's commitment to look in depth into the tax paid by banks with the view to ensuring that these institutions pay more realistic taxes. The SACP would like to see this process being linked to the overall transformation and diversification of the finance industry in particular the banking sector.
The exemption of flammable paraffin for domestic use from VAT is highly welcomed. Paraffin is used by many poor people. Therefore this will ensure that they have access to this basic need and comes as a relief to this section of our society.
However we are concerned that the welfare pension grants increment from R540.00 to R570.00 is below the inflation rate.
While there is a shift from chasing budget deficit, we are concerned that government may rely excessively on the revenue from privatisation to finance the budget deficit. We are convinced that privatisation of key infrastructural parastatals like Telkom, ESKOM and TRANSNET could defeats the whole aim of infrastructural development.
Issued by the SACP Media, Information and Publicity
Please contact Comrade Mazibuko K Jara (Surname Jara)
Mobile: 082 922 5716
Tel: 2711 339 3621/2
E-mail: sacp1@wn.apc.org