Finance Minister Trevor Manuel on Wednesday brushed aside questions about the state of his emotions on the release of the 2004/05 Budget, saying it was a ”bloody good” one.
Briefing the media ahead of his Budget speech in the National Assembly, Manuel shook his head when told he looked ”down” and ”less ebullient” than he did at this time last year.
”No, I am not down. In the circumstances of the trends of the last number of years, you can run out of runway.”
While last year’s individual tax relief of R13,3-billion could not be matched, mainly due to slowed revenue collection, taxpayers will still save R4-billion in 2004/05 to compensate for the effects of inflation.
There are also increases in social grants and spending on social development and the fight against HIV and Aids.
”What we have put together builds on what we have been able to do. Going forward, government will have to choose between what it can do on the tax side, and what it can do on the spending side. There is a focus on improving the quality of spending.”
Total health spending over the next three years will total R140-billion, an annual average growth rate of 8,4% compared to the 12,1% over the past three years.
Spending on fighting Aids is to be boosted by R2,1-billion over the next three years.
An additional R19,7-billion goes to provinces over this period for pro-poor social services spending.
”The president said in his State of the Nation address that we must be fearless in the way we address what was left undone. I am not down, dowdy or less ebullient than last year. I still think its a bloody good Budget.”
Manuel said there was reasonable progress with the exchange control amnesty process — which offers protection from prosecution to those who come clean on having moved money offshore illegally.
”We have received 14 000 applications. I am advised that a large number of applications are being approved. I am amazed at those with the power to project tens of billions.”
He said the department will be unable to answer questions about revenue receipts from the process, as the cut-off date is February 29 and he expected ”many more applications”.
”It will take some months before we can make a commitment on the information that the analysts already have. They say it’s billions of rands, but we don’t have that information as yet.”
Manuel also maintained that mining royalties are necessary.
”I remain of the view that it’s not a tax — it’s a rent. These people extract what is part of our collective patrimony. They take it away and it does not get replaced.”
According to the Mining Royalty Bill, companies will have to pay the government a tax based on their sales figures. The introduction of the royalty will be delayed by five years after the introduction of the Mineral and Petroleum Resources Development Act.
Commenting on suggestions by the People’s Budget Campaign that the third phase of the arms deal be cancelled to increase revenue, Manuel said the arms deal procurement package actually saved money.
”If you look at the costs of them bumping up the costs in the second phase because we’ve cancelled … it’s not do-able.”
All Manuel would say when asked if he would be presenting the next Budget, was: ”The president puts together the Cabinet.”
”I have no entitlement to this job. Heads of state reshuffle Cabinets from time to time. MPs must serve with a sense of humility, not of entitlement.”
Commenting on accusations by opposition parties last year that he would present an election Budget, the minister said he would still be a member of the ruling party after the elections.
”You do that sort of thing to create problems for those who come after … we did not want to cause problems for those who come later because it will be us.” — Sapa