(ATC, April 2025) (121)
Hon. NM Hadebe, MP
Honourable Speaker,
The Inkatha Freedom Party acknowledges the presentation of the 2025 Fiscal Framework and Revenue Proposals.
The IFP notes the macroeconomic projections underpinning the fiscal framework, particularly the estimated GDP growth rate and inflation forecasts. While the government’s revenue projections are optimistic, we urge a more cautious approach, considering global economic uncertainties and domestic structural challenges such as high unemployment, energy insecurity, and policy inefficiencies.
We support efficient government spending but remain concerned about continued wasteful and irregular expenditure. We call for a strengthened oversight mechanism to curb corruption and mismanagement; a realignment of expenditure priorities to ensure increased investment in healthcare, education, and job creation initiatives; and greater fiscal support for small and medium enterprises (SMEs) as engines of economic growth and employment.
The revenue proposals include adjustments in taxation and the introduction of new levies.We raise the following concerns, that any increases in taxation should be carefully assessed to avoid discouraging investment and burdening households. We welcome the government’s expansion of the zero-rated goods list to protect vulnerable communities. While we support measures to curb harmful consumption (e.g., tobacco and alcohol excise duties), we caution against excessive increases that may fuel illicit trade and job losses in affected industries.
We acknowledge the importance of debt sustainability and therefore call for a pragmatic approach to deficit reduction. Instead of austerity measures that disproportionately impact service delivery, we advocate for targeted expenditure cuts in non-essential government spending; enhanced revenue collection through improved tax compliance and efficiency in tax administration; and encouraging private-sector partnerships to lighten fiscal pressures while stimulating investment.
Fiscal policies must be assessed in terms of their impact on poverty reduction, employment, and economic growth. We emphasise the need for increased public investment in infrastructure to create jobs and improve service delivery; expanded support for agricultural development to enhance food security and rural economies; and greater allocation towards youth employment programs and skills development to equip South Africans for future industries.
Furthermore, we stress the importance of a transparent and accountable fiscal process. To ensure that the fiscal framework achieves its intended outcomes, there must be clear, measurable targets and an ongoing evaluation mechanism to monitor progress. We believe that regular reporting and public disclosure of financial performance will enhance accountability and build trust between the government and the citizens we serve.
The IFP urges the government to adopt a fiscal framework that is responsible, inclusive, and pro-growth. We remain committed to constructive engagement in the budget process to ensure that South Africa’s fiscal policies serve the interests of all citizens, fostering economic growth, social justice, and long-term stability.
In consideration of the issues we have raised, the IFP supports the 2025 Fiscal Framework and Revenue Proposals and as well as the committee report thereon.
I thank you.
