Finance Minister Trevor Manuel on Tuesday dismissed Democratic Alliance claims that his medium-term Budget policy statement (MTBPS) is a pre-election budget.
Replying to debate on the MTBPS in the National Assembly, he said this was not the case.
”[The MTBPS] is careful, it is organic, it is based on past performance. It is not a pre-election budget because the African National Congress does not need a pre-election budget. We are confident of the ground we stand on,” Manuel said.
Some opposition parties have called on the government to intervene in reducing unemployment, without providing a plan for what should be done.
”Unemployment is not an opposition subject. The ANC represents the highest number of unemployed people. I urge parties that have ideas of what has to be done to share them with us,” Manuel said.
Speaking during the debate, DA finance spokesperson Pierre Rabie said the MTBPS ”is in essence a pre-election statement”.
His party is concerned there would be very limited tax relief for middle-income earners in the new financial year.
There are also a number of state, provincial and municipal budgets that are underspent, he said.
However, New National Party finance spokesperson Willem Odendaal said the Budget’s focus on accelerating growth in the small business sector is to be welcomed.
The current under-performance of small, medium and micro enterprises in terms of economic growth and job creation could be blamed on the red tape of an over-regulated labour environment.
Odendaal suggested the government consider an employment grant to help emerging entrepreneurs employ more and more unemployed people.
The grant will help such employers pay their employees’ salaries for the first few start-up months, until the business is able to carry itself.
African Christian Democratic Party finance spokesperson Adriaan Blaas welcomed the focus on job creation.
”The focused approach to assist the vulnerable and poor through social support measures will help the most needed in the communities,” he said. — Sapa