Honourable Speaker, the ACDP believes that when you look at our budget, we should be looking at it as far more than just a ledger of income and expenditure. We should also consider it from a moral perspective. The budget should reflect our deepest priorities and how we care for the most vulnerable among us.
As we reflect on the current realities, navigating demands for structural reform, the stabilisation of our national debt, and the protection of our social wage, we can seek wisdom from the timeless scripture that speaks about stewardship.
1 Corinthians 4:2 says: “Moreover, it is required in stewards that one be faithful.
Now, what does ‘faithful stewardship’ mean? Faithful stewardship of the fiscus means zero tolerance for corruption, zero tolerance for wasteful expenditure, zero tolerance for mismanagement of state funds. Sadly, we don’t see that. Taxpayers are demanding value for every rand of tax that they pay. They are not seeing that.
Other speakers have referred to the wastage that we see, to the corruption that we see, to the over-inflated prices that we see.
Another aspect, of course, and which is deeply concerning, is the illicit economy.
Speaker, the illicit economy is estimated to cost the fiscus a staggering R100 billion each year. These activities include: smuggling, customs and excise fraud, under-declaration, counterfeit trade, fuel and tobacco syndicates, and organised tax crime.
Every illicit transaction deprives the fiscus of revenue needed for schools, hospitals and public infrastructure. We, as the ACDP, encourage SARS and law enforcement agencies to disrupt and totally shut down illicit trading networks.
Speaker, significantly—and despite some of the positives of the budget—domestic companies are still sitting on record amounts of cash. They are not reinvesting it. Non-financial companies hold an estimated R1.8 trillion which equates to almost 20% of the country’s GDP.
Why aren’t they investing? It is mainly due to elevated interest rates, lingering concerns about stagnant economic growth and policy uncertainty – so they would prioritise capital preservation over development.
Speaker, we need to accelerate structural reforms to encourage domestic investment to grow our economy and create jobs.
I thank you.
