Budget 2022: Hands off the private sector
The civil rights organisation AfriForum condemns government’s intention to increase its role in the South African economy as announced by the minister of finance, Enoch Godongwana, in the 2022 National Budget Speech delivered earlier today.
To truly achieve economic growth, government needs to relieve excessive taxes on the private sector and cut back on its own internal spending on salary increases and bonuses. Cause for further concern is the expansion of South Africa’s state debt which now amounts to R69 291 per citizen. Servicing our debt has become the countries single biggest expense.
The budget speech also confirmed the state’s intention of keeping failing state-owned enterprises (SOEs) afloat on the backs of already over-burdened taxpayers.
“During the speech Godongwana largely blamed South Africa’s economic woes on COVID-19. This completely disregards the fact that South Africa’s economy was in tatters long before the outbreak of the virus and it was government’s draconian lockdowns that caused the real damage. To bring about true economic growth, government must quit interfering in the market and relieve excessive taxes on the private sector. Therefore, the further expansion of the state’s role and influence in the economy is another step in the wrong direction,” says Reiner Duvenage, Campaign officer for strategy and content at AfriForum.
