Budget shortfall can be covered ‘without hiking taxes'
The chair of Parliament's Standing Committee on Public Account believes the R60 billion budget shortfall can be bridged without raising taxes.
Songezo Zibi spoke at the media briefing by chairpersons of the Finance Cluster in Parliament.
Zibi believes the government is borrowing too much while spending poorly.
He said not enough is done to eliminate financial losses, adding that the government should seriously discuss measures to save more money.
"This R60 billion shortfall that we're trying to sort out with this postponement of the budget can come from this saving. We are borrowing too much while spending inefficiently or allowing money to be stolen.
"In 2014/2015, government debt was 1.79 trillion. In the financial year 2023/2024, it was 5.26 trillion. So, we have borrowed an additional 2.6 - 2.7 trillion, and we have nothing to show for it."
Zibi said that following the US funding withdrawal, the government would have to find the money elsewhere.
"We all know about the withdrawal of US aid funding. It means money must be found somewhere to close the gap," said Zibi.
"We cannot leave South Africans to fend for themselves. We all know about PEPFAR and its contributions to HIV and AIDS programmes and the withdrawal of funds. It's about people's lives."
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