The Inkatha Freedom Party expects the Minister of Finance, Hon. Nhlanhla Nene, to announce measures to reign in government spending during his Medium Term Budget Policy Statement to be delivered tomorrow as means of hedging against a greater risk of less than forecasted tax receipts driven primarily by lower than expected economic growth during 2015.
Inkatha Freedom Party spokesperson on Finance, Ms Sibongile Nkomo, MP, said,” The Minister has the unenviable task of navigating a myriad of challenging factors whilst trying to meet budget deficit targets. With GDP growth forecasts significantly dropping to just above 1% for this year and next, the very real possibility of lower than expected tax receipts looms.
The Minister must ensure that he takes this into account and cuts government spending accordingly. We do not support a raise in taxes in this already strenuous economic climate.”
“Unemployment, poverty, and social inequality are increasing at an alarming rate with over 8 million people being currently without jobs. Food and water security are decreasing and our education, transport and energy sectors are in crisis management and we have an unaffordable nuclear energy deal on the table. The Minister has stated before that he will not sanction the pending nuclear deal if it is deemed unaffordable and we look forward to his further comment in this regard.”
“Spending must be kept tight, with wasteful and reckless government expenditure being heavily sanctioned. A line must also be drawn in the sand in respect of corruption related activities which must now carry the most severe criminal penalties for all parties found to be involved in same.”