WATCH | Mbalula says ministerial cuts are not enough to fund SA budget

Mbalula

Cape Town — African National Congress (ANC) secretary-general Fikile Mbalula has said ministerial cuts would not be enough to fund South Africa’s R2.7 trillion budget.

Following the Budget Speech, the conversation centred around the increase in VAT to 15.5%, which will later be improved to 16% by the 2026/27 financial year.

Mbalula said the VAT increase was the only solution for the government to continue funding critical programmes. He expressed support for the budget proposals that Finance Minister Enoch Godongwana tabled, EWN reported.

One of the suggestions made by opposition parties as an alternative to VAT increases was a reduction of the Government of National Unity (GNU) Cabinet and all ministerial perks,

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In response, Mbalula said there have been many cuts to ministerial perks over the years.

“We have been cutting, even in the osterity budgets that have been implemented, these cuts have been going on. The cutting will not be new except that in the GNU we have seen an increase in cabinet when the intended goal was to see a decrease,” he said.

He explained that Ministers have been affected by the cuts and the government has cut their expenditures.

“Ministers used to drive cars in the range of R1 million, it was cut to R500,000. Perks like credit cards were taken away probably 15 years ago. Flying arrangements: Ministers are flying economy, which was cut as well from flying business locally. You only fly business internationally,” Mbalula said,

He said there were cuts in supporting staff for international trips and said Ministers only approved the most important international trips.

He added that Ministers are now taxed when they own more than two properties and said it was not the case that Ministers were treated differently.

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Compiled by Matthew Petersen

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