By Alicestine October
Following the tabling of the Budget this week, committee Chairpersons of the Finance Cluster in Parliament, during a media briefing, acknowledged that the Budget signals a decisive shift in parliamentary engagement with fiscal governance, focused on efficiency, fairness and public accountability.
The Minister of Finance, Mr Enoch Godongwana, re-tabled the Budget this week, following two previous attempts, which were met with fierce resistance from opposition parties.
Reflecting on the budget process, the Chairpersons welcomed the fiscal restraint of the newly tabled Budget and some, in their remarks, pushed for structural reforms and accountability.
Chairperson of the Standing Committee on Finance, Dr Joe Maswanganyi, described the revised fiscal framework as “credible, pro-poor and pragmatic”. Dr Maswanganyi stressed that the new iteration of the Budget protects the people living in poverty, with 61% of non-interest expenditure – amounting to around R1.5 trillion – allocated to the social wage, including education, healthcare, housing, and social protection. R453.7 billion is allocated to social grants. “This budget preserves macroeconomic stability while addressing the needs of those most affected by economic hardship,” he said.
The Select Committee on Appropriations Chairperson, Ms Tidimalo Legwase, provided insight into the legislative process of the budget proposals. She detailed the six-week public participation process for the Division of Revenue Bill and highlighted the importance of inclusive and transparent governance. “The role of provincial legislatures and public participation cannot be overstated,” she said.
According to the Chairperson of the Standing Committee on Public Accounts, Mr Songezo Zibi, public outrage over the initial VAT-hike proposal overshadowed many of the country’s pressing spending priorities. Among those, he listed crumbling infrastructure, a health sector constrained by medical personnel and equipment shortages and financially unviable municipalities with catastrophic consequences for communities.
Mr Zibi said that a national conversation is needed on the composition of state expenditure, as too much is lost through procurement corruption and ballooning compensation of employees. “We must measure success not by how much we spend but by how well we spend it,” he said.
Chairperson of the Standing Committee on Appropriations, Mr Mmusi Maimane, stressed that the country needs a budget that “does not just tax more, but that grows more”. “We need investment in infrastructure, not bureaucracy; we need safety, not statistics; we need jobs, not just employment in the state; and we need every rand to be spent wisely — and visibly.” Bemoaning government’s economic inertia, Mr Maimane proposed a White Paper on Economic Reform, with a strengthened focus on municipal performance, and tougher spending reviews. “South Africa doesn’t have a revenue problem. It has a growth and governance problem,” he said.
In her reflections, the Select Committee on Finance Chairperson, Ms Sanny Ndhlovu, focussed on local government and communication infrastructure. Welcoming the over R1 trillion earmarked for infrastructure, she urged speedy reforms to the local government funding model. “Rural municipalities are under-funded, under-skilled and unable to meet basic service needs,” she said. She also called for expanding digital access through public-private broadband projects, especially in rural areas.
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