Fellow South Africans,
As we look forward to today’s Medium-Term Budget Policy Statement, the Minister of Finance’s address will be a clear indication of the Government of National Unity’s genuine priorities—priorities that are seen in their actions, not merely in the well-worn promises that too often remain just that: Promises!
There is no doubt that we stand at a crossroads, where a reimagined fiscal policy framework defined by decisive action is essential to building a more equitable, resilient, and growth-focused economy.
At its very core, the Minister’s Budget Policy Statement must resonate with the urgency of our time.
We need a clear path towards a fiscally sustainable future that uplifts every South African, particularly the millions who remain vulnerable on the margins of a stagnant economy defined by low growth and a lack of investment and opportunities.
And I believe that this is not only something that ActionSA stands for, but we also believe that this is what you, South Africans, voted for in the 2024 election.
So today, I stand before you on behalf of ActionSA, a party committed to fixing South Africa, to outline the critical areas that need urgent attention in the Minister of Finance’s speech today.
1. UNDERFUNDING OF SARS
First and foremost, let’s talk about the South African Revenue Service (SARS).
We expect the government to fall short on its revenue collection target in the current fiscal year, and we maintain that this can be directly attributed to the chronic underfunding of SARS.
Worryingly, when measured against international benchmarks, SARS is underfunded by R5.6 billion, more than 30%.
The consequences of this underfunding is twofold. First, it hampers SARS’s ability to collect the full tax revenues owed to the government.
Given that SARS collects more than 90% of government revenue, it is astounding that the agency is not being adequately resourced, which is akin to the government spitting on the hand that feeds it.
Secondly, underfunding allows the illicit economy to thrive. The rise of the illicit economy not only drains billions in tax revenue but also stifles economic growth, discourages foreign investment, and undermines business confidence.
ActionSA understands that the R5.6 billion underfunding cannot be remedied overnight.
Therefore, we recommend that an additional R2 billion be allocated to SARS over the medium-term expenditure framework – the current and next two financial years – to improve revenue collection and clamp down on illicit trade.
2. HIGH PUBLIC DEBT AND INTEREST BILL
Next, South Africa’s public debt is simply unsustainable.
With debt levels expected to reach R5.29 trillion by the end of the current financial year, it is not just an abstract number—it represents billions in interest payments that could have gone to essential services like healthcare, schools, and clean water.
Almost 20 cents of every rand collected by SARS goes to paying interest on debt. This is unsustainable, and yet, the government has no credible plan to bring the debt under control.
ActionSA is clear that austerity is not the answer if it targets the wrong areas, rather, the focus must be on ending wasteful spending as a priority.
We cannot mortgage our children’s future just to keep paying for a bloated and inefficient state.
3. BLOATED CABINET
Speaking of inefficiencies, the bloated Cabinet is a prime example of this government’s fiscal mismanagement.
We have an Executive comprising 32 Ministers and 43 Deputy Ministers, which is frankly an international embarrassment. Countries with larger populations and economies operate with smaller, more streamlined, efficient and less costly Cabinets.
Why should South Africans bear the burden of such extravagance?
ActionSA calls on the President and the Finance Minister to reduce the size of this Cabinet, reduce the associated billion-rand perks, streamline the Executive, and redirect those funds to where they are needed most—in service delivery.
4. POLICE
No society can function without law and order and as we have recently seen with the mass murders in Lusikisiki in the Eastern Cape and the rape and murder of a six-year-old girl in Soweto last week at the hands of a foreign national, lawlessness is tearing our communities apart.
Yet, our police force remains woefully underfunded. ActionSA contends that Government is asking our police officers to do the impossible – work in a climate of rising crime with fewer resources every year, all while being underpaid and led by rudderless police leadership.
South Africans are crying out for safety, a call which we believe demands that the Finance Minister allocates additional funding to frontline policing, ensuring they are properly equipped, trained, and deployed in high-risk communities across the country.
This is also the time to evaluate whether the government is serious about combating corruption. We need to reinstate the Scorpions as an independent anti-corruption agency, a critical tool in addressing the high-level corruption that has plagued our government.
5. PUBLIC WORKS AND INFRASTRUCTURE
Growth-centric economies, which South Africa’s is not, feature infrastructure investment as a top priority.
Which is why we are also deeply concerned about the lack of strategic investment and focus on public works and infrastructure.
Roads are crumbling, water systems are failing, and service delivery has become unreliable in many parts of the country, where critical economic infrastructure is either deteriorating or lacking entirely.
Consequently, this decline strangles growth and limits opportunities for South Africans, highlighting the urgent need for ramped up investment in our infrastructure.
Therefore, this afternoon, we expect to hear about tangible plans to increase public infrastructure investment.
This is not just about repairing what is broken – it is about creating jobs and restoring hope to millions of South Africans. We need an infrastructure-led recovery that prioritises long-term development and sustainable growth.
6. HOME AFFAIRS
Turning to Home Affairs, we must confront the financial burden associated with illegal immigration. While the deportation process is a necessary expense, its rising costs, which should not be borne by the South African taxpayer, place significant strain on an already overstretched department.
While we believe in upholding the rights of all people, the reality is that unchecked migration is unsustainable and places far too great a burden on the fiscus.
Government must allocate adequate resources to Home Affairs, not only to handle deportations effectively but also to secure our borders and ensure a functioning immigration system that benefits our country.
7. BASIC EDUCATION
Lastly, education is the cornerstone of any prosperous nation. Yet, owing to budget cuts, across the country, we are seeing thousands of teachers’ jobs being slashed, with provinces like the Western Cape expected to lose 2,400 teachers over the next year.
This senseless decision disproportionately affects those trying to provide quality education under difficult circumstances. How can we expect our children to thrive when the resources they need are being stripped away?
Instead of cutting education budgets, we should be investing more, especially in training and retaining quality teachers. Our children deserve the best start in life, and we must prioritise education funding across the country.
In closing, let me be clear:
As the constructive opposition, ActionSA stands ready to hold this government accountable and provide the necessary solutions to get South Africa back on track towards growth.
This afternoon’s budget is not just a set of numbers—it represents choices that will either lift South Africans out of despair or push them further into hardship.
South Africans deserve a government that serves the people, not itself.
I Thank you.
MTBPS: Without Fixing SARS Chronic Underfunding, Everything Else will be Nothing but a Wishlist
Fellow South Africans,
As we look forward to today’s Medium-Term Budget Policy Statement, the Minister of Finance’s address will be a clear indication of the Government of National Unity’s genuine priorities—priorities that are seen in their actions, not merely in the well-worn promises that too often remain just that: Promises!
There is no doubt that we stand at a crossroads, where a reimagined fiscal policy framework defined by decisive action is essential to building a more equitable, resilient, and growth-focused economy.
At its very core, the Minister’s Budget Policy Statement must resonate with the urgency of our time.
We need a clear path towards a fiscally sustainable future that uplifts every South African, particularly the millions who remain vulnerable on the margins of a stagnant economy defined by low growth and a lack of investment and opportunities.
And I believe that this is not only something that ActionSA stands for, but we also believe that this is what you, South Africans, voted for in the 2024 election.
So today, I stand before you on behalf of ActionSA, a party committed to fixing South Africa, to outline the critical areas that need urgent attention in the Minister of Finance’s speech today.
1. UNDERFUNDING OF SARS
First and foremost, let’s talk about the South African Revenue Service (SARS).
We expect the government to fall short on its revenue collection target in the current fiscal year, and we maintain that this can be directly attributed to the chronic underfunding of SARS.
Worryingly, when measured against international benchmarks, SARS is underfunded by R5.6 billion, more than 30%.
The consequences of this underfunding is twofold. First, it hampers SARS’s ability to collect the full tax revenues owed to the government.
Given that SARS collects more than 90% of government revenue, it is astounding that the agency is not being adequately resourced, which is akin to the government spitting on the hand that feeds it.
Secondly, underfunding allows the illicit economy to thrive. The rise of the illicit economy not only drains billions in tax revenue but also stifles economic growth, discourages foreign investment, and undermines business confidence.
ActionSA understands that the R5.6 billion underfunding cannot be remedied overnight.
Therefore, we recommend that an additional R2 billion be allocated to SARS over the medium-term expenditure framework – the current and next two financial years – to improve revenue collection and clamp down on illicit trade.
2. HIGH PUBLIC DEBT AND INTEREST BILL
Next, South Africa’s public debt is simply unsustainable.
With debt levels expected to reach R5.29 trillion by the end of the current financial year, it is not just an abstract number—it represents billions in interest payments that could have gone to essential services like healthcare, schools, and clean water.
Almost 20 cents of every rand collected by SARS goes to paying interest on debt. This is unsustainable, and yet, the government has no credible plan to bring the debt under control.
ActionSA is clear that austerity is not the answer if it targets the wrong areas, rather, the focus must be on ending wasteful spending as a priority.
We cannot mortgage our children’s future just to keep paying for a bloated and inefficient state.
3. BLOATED CABINET
Speaking of inefficiencies, the bloated Cabinet is a prime example of this government’s fiscal mismanagement.
We have an Executive comprising 32 Ministers and 43 Deputy Ministers, which is frankly an international embarrassment. Countries with larger populations and economies operate with smaller, more streamlined, efficient and less costly Cabinets.
Why should South Africans bear the burden of such extravagance?
ActionSA calls on the President and the Finance Minister to reduce the size of this Cabinet, reduce the associated billion-rand perks, streamline the Executive, and redirect those funds to where they are needed most—in service delivery.
4. POLICE
No society can function without law and order and as we have recently seen with the mass murders in Lusikisiki in the Eastern Cape and the rape and murder of a six-year-old girl in Soweto last week at the hands of a foreign national, lawlessness is tearing our communities apart.
Yet, our police force remains woefully underfunded. ActionSA contends that Government is asking our police officers to do the impossible – work in a climate of rising crime with fewer resources every year, all while being underpaid and led by rudderless police leadership.
South Africans are crying out for safety, a call which we believe demands that the Finance Minister allocates additional funding to frontline policing, ensuring they are properly equipped, trained, and deployed in high-risk communities across the country.
This is also the time to evaluate whether the government is serious about combating corruption. We need to reinstate the Scorpions as an independent anti-corruption agency, a critical tool in addressing the high-level corruption that has plagued our government.
5. PUBLIC WORKS AND INFRASTRUCTURE
Growth-centric economies, which South Africa’s is not, feature infrastructure investment as a top priority.
Which is why we are also deeply concerned about the lack of strategic investment and focus on public works and infrastructure.
Roads are crumbling, water systems are failing, and service delivery has become unreliable in many parts of the country, where critical economic infrastructure is either deteriorating or lacking entirely.
Consequently, this decline strangles growth and limits opportunities for South Africans, highlighting the urgent need for ramped up investment in our infrastructure.
Therefore, this afternoon, we expect to hear about tangible plans to increase public infrastructure investment.
This is not just about repairing what is broken – it is about creating jobs and restoring hope to millions of South Africans. We need an infrastructure-led recovery that prioritises long-term development and sustainable growth.
6. HOME AFFAIRS
Turning to Home Affairs, we must confront the financial burden associated with illegal immigration. While the deportation process is a necessary expense, its rising costs, which should not be borne by the South African taxpayer, place significant strain on an already overstretched department.
While we believe in upholding the rights of all people, the reality is that unchecked migration is unsustainable and places far too great a burden on the fiscus.
Government must allocate adequate resources to Home Affairs, not only to handle deportations effectively but also to secure our borders and ensure a functioning immigration system that benefits our country.
7. BASIC EDUCATION
Lastly, education is the cornerstone of any prosperous nation. Yet, owing to budget cuts, across the country, we are seeing thousands of teachers’ jobs being slashed, with provinces like the Western Cape expected to lose 2,400 teachers over the next year.
This senseless decision disproportionately affects those trying to provide quality education under difficult circumstances. How can we expect our children to thrive when the resources they need are being stripped away?
Instead of cutting education budgets, we should be investing more, especially in training and retaining quality teachers. Our children deserve the best start in life, and we must prioritise education funding across the country.
In closing, let me be clear:
As the constructive opposition, ActionSA stands ready to hold this government accountable and provide the necessary solutions to get South Africa back on track towards growth.
This afternoon’s budget is not just a set of numbers—it represents choices that will either lift South Africans out of despair or push them further into hardship.
South Africans deserve a government that serves the people, not itself.
I Thank you.