High Street Auctions Director Joff van Reenen expressed disappointment in the national budget delivered in Parliament, saying the government lost a valuable opportunity to show citizens and foreign investors that it had feasible plans to affect an economic turnaround.
“We have record unemployment figures and job losses in the private sector coupled with a massively bloated public sector that has a wage bill to match, and the most tangible solution from the government in this budget is sinking another R12.6 billion into creating temporary jobs that offer nothing in the way of long-term sustainability.
This while we will be servicing a combined debt rising to nearly R6 trillion in the next three years with interest payments to bondholders and other lenders of R269bn this financial year, rising to R338.6bn in the 2023/24 financial year. It’s a joke, and everyone not on the government payroll is the laughing stock.
Van Reenen says before delivering the budget Tito Mboweni would have done well to heed the contents of the latest Ipsos report on issues plaguing countries across the globe.
“Ipsos asked around 20 000 adults in 27 countries about 18 points of stress in their What Worries the World Report that came out a few days ago.
“Respondents had to select three topics out of the listed 18 that they were the most worried about, and South Africa was the only country in the world in which Covid didn’t even make that shortlist.
“Top of the list in this country with a whopping 59% was dire concern about unemployment and corruption. This was followed by crime (58%) and poverty and social inequality (29%). Covid-19 came next at a comparatively measly 24%.
The government needs to start listening to its people and offering more than sticking plasters to cover holes in the disintegrating dam wall that is our national economy.
“Don’t pretend to ‘give’ tax breaks to low-income households, then snatch the money straight back with massive cost-of-living hikes that will invariably follow a big increase in the fuel levy.
“Be honest and cut back where it matters, like banning further bailouts of poorly managed State Owned Enterprises and paying more than lip service to rampant corruption. Global investors aren’t fooled by panaceas, and neither are the citizens of this country.”