Budget 2025: Cut wasteful spending, don’t raise taxes – DA

Published on


Add Smile FM on Google

 

While rumblings continue about the 2025 Budget, the DA has released its vision for the country’s finances, focusing on economic growth and job creation—without raising taxes.

 

This comes after last week’s historic delay in tabling the budget after parties in the Government of National Unity opposed a proposed 2% VAT hike.

 

During a special Cabinet meeting on Monday, Finance Minister Enoch Godongwana’s revised budget – which reportedly proposed cuts to health and education – was also rejected as “unworkable”. This revised budget did not include a VAT hike.

The DA’s finance spokesperson, Dr. Mark Burke, says South Africa can fund the projected R60 billion shortfall without increasing taxes, taking on more debt, or cutting frontline services. He argues that wasteful spending must be addressed first.

 

To achieve this, the DA proposes key cost-cutting measures, including slashing government advertising budgets by 50%, cutting travel and catering expenses by a third, and freezing hiring for non-essential government positions.

 

The party also wants an audit to root out so-called ‘ghost employees’ on government payrolls, following PRASA’s shocking revelation that 10% of its workforce didn’t exist.

 

Dr. Burke insists that economic growth is the only sustainable way forward. The DA is pushing for faster trade and logistics reforms, clear privatization plans for key rail and port operations, and a $5 billion concessional lending arrangement with the World Bank to boost infrastructure.

 

Beyond cutting waste, the DA says increasing tax compliance from 63% to 67% could generate an extra R60 billion annually. They also propose selling underutilized state land and properties to raise R10 billion per year.

 

Crucially, the DA is calling for no cuts to critical services like healthcare, policing, and education. Instead, they propose converting the Social Relief of Distress grant into a Job Seekers’ Allowance to encourage employment.

 

Dr. Burke says the ANC’s approach of raising taxes and borrowing more has failed to improve people’s lives. He warns that without real reform, South Africa will remain stuck in economic stagnation.

 

The DA is urging the Government of National Unity to adopt its proposals, calling for fiscal discipline, pro-business reforms, and a focus on job creation in Budget 2025.

 

The country should find out on 12 March what the final Budget will look like.

 

Latest articles

Residents urged to save water as Cape Town dams sit at 78,1%

 The City of Cape Town is encouraging residents to continue using water wisely, despite dam levels standing at 78,1%. As of Monday, 3 August 2026,...

Kusile corruption case: Two plead guilty, will testify against former Eskom-execs

 British businessman Michael Lomas and businessman Hudson Kgomoeswana have been convicted after entering guilty pleas in the long-running corruption case linked to Eskom's Kusile...

Madlanga report calls for criminal probes against Sibiya, 3 others

 President Cyril Ramaphosa has noted the recommendations and referrals contained in the second interim report of the Madlanga Commission of Inquiry, which include calls...