The following are reactions from various political parties to Finance Minister Trevor Manuel’s 2004/05 Budget speech on Wednesday.
Cassie Aucamp, head of the National Action party: “There were no surprises and it was a balanced Budget. It could have included more growth incentives.”
Motsoko Pheko, president of the Pan Africanist Congress: “The decline in tax for the poor was excellent, but we weren’t happy with the pension increase of only R40. The policies are encouraging inequality, like privatisation, which is causing unemployment, and we believe there must be an unemployment allowance of R500 per month. The Budget also ignored the fact of landlessness and that 10-million people live in squatter camps.”
Pieter Mulder, head of the Freedom Front Plus: “The Budget showed that after several years of plenty, now the pantry is getting empty, with only moderate bonuses distributed this year. We were very disappointed that pension funds tax was not abolished and the increase was inadequate. Unemployment is also not being addressed.”
George Madikiza, chief whip of the United Democratic Movement: “The increase in funding for HIV/Aids is a good start. We also welcome the rise in old-age pensions but it was still too small, it should have been raised to R1 000.”
Patricia de Lille, head of the Independent Democrats: “The Budget saw a healthy shift to more social spending, and the large allocation to the rollout of HIV/Aids was welcome, as was the above-inflation increase in social grants. One thing that was disappointing was the lack of specific funding for school books.”
Gavin Woods, finance spokesperson for the Inkatha Freedom Party: “It was a well-crafted Budget and very much a non-event, but overall it was very well done. One complaint was that it does not really promote economic growth and jobs.”
Raenette Taljaard, finance spokesperson for the Democratic Alliance: “There was no bold vision and no steps to put South Africa on a higher growth path that would lead to more job creation for South Africa’s millions of unemployed. We were happy with the R2,1-billion for the rollout of HIV/Aids programmes and for the tax measures to boost share ownership for empowerment purposes. But there was no announcement on the retirement tax, and we were disappointed with the proceeds of privatisation, and no mention was made of this.” — I-Net Bridge