ActionSA, a party that garnered 1.2% of the national vote last year and has six seats in Parliament, is pushing to have deputy ministers removed in a bid to cut costs.
Following its apparent win in fighting for the removal of two successive VAT increases this year and the next as well as forcing government tax relief, the administration will now have to find another way of cutting expenditure.
Speaking to IOL, ActionSA national director of communications and parliamentary operations, Matthew George, said now that the VAT hike had been scrapped and the government needed to adjust tax brackets, it needed to find a new way to plug a revenue hole of at least R28 billion and as much as R34bn.
George said ActionSA was, as of yesterday, “one step closer to the official introduction of a Constitutional amendment, … which effectively will get rid of all deputy ministers in South Africa”.
South Africa currently has 43 deputy ministers along with 32 ministers. ActionSA has previously said its Cabinet Reform Package offers a solution to eliminate R1.5bn in taxpayer funds “squandered on a bloated executive every year”.
In its statement last night on scrapping VAT increases, ActionSA said “it will be the responsibility of Parliament, together with National Treasury, to urgently finalise alternative revenue and expenditure proposals within 30 days. This marks a critical step in protecting South Africans from regressive and unsustainable tax increases.”
Last night, the political party noted that it has ensured that substitute revenue proposals and corresponding spending savings are considered to offset the R28 billion shortfall from scrapping tax increases.
“This will ensure that government inefficiencies are addressed before any further burden is placed on South Africans,” it said.
“ActionSA will remain focused on cutting wasteful expenditure, curbing corruption, and prioritising service delivery over reckless tax increases. We call on all stakeholders to contribute to sustainable and equitable revenue solutions that do not compromise the financial well-being of our citizens,” it said last night. The political party was formed in August 2020 by former Johannesburg Mayor, Herman Mashaba, when he was part of the Democratic Alliance.
Old Mutual chief economist, Johann Els, said that government may have to shift money previously allocated to expanding frontline public servants such as nurses and teachers.
However, George said the state needed to cut “wastage” and not essential frontline services, which would have a debilitating effect on areas such as improving literacy rates. Rather, he indicated, costs should be removed in areas such as ensuring that government entities did not purchase new fleets of BMWs.
IOL