Note: The following statement was delivered today by Build One South Africa (BOSA) Leader, Mmusi Maimane MP, in Parliament ahead of Wednesday’s Budget Speech.
Build One South Africa (BOSA) today calls on Finance Minister Enoch Godongwana to prioritize economic growth, job creation, and fiscal responsibility as he tables the National Budget tomorrow.
This marks the second attempt to table the Government of National Unity’s (GNU) first budget, setting the course for how R2.4 trillion of public funds will be spent over the next year.
We wish to emphasise the need for a budget that reflects the urgent realities of South Africans facing an escalating cost of living crisis.
South Africans are struggling to get by, with 76% running out of money before month-end and food prices soaring. Meanwhile, government continues wasteful spending on bailouts, debt, and an oversized Cabinet.
Tomorrow’s budget is a defining moment—will this government prioritize the people or continue on a path of reckless mismanagement?
BOSA has set out a series of expectations for the GNU’s first budget, urging the government to:
Drive economic growth up to 5% per year. The President’s 3% target is insufficient. Job creation must be a key priority, with BOSA calling for a R100 billion Jobs and Justice Fund and township Special Economic Zones (SEZs) to unlock economic opportunities.
Increase infrastructure investment. The current infrastructure investment is at 14% of GDP, well below the 30% National Development Plan target. Strategic investment in roads, transport networks, energy, and water systems are essential to economic expansion.
Reject new taxes and VAT increases. South Africans are already overburdened. There can be no tax increases or new taxes.
Phase out the Social Relief of Distress (SRD) grant responsibly. Social spending already accounts for 60% of the budget. The SRD grant costs R38 billion per year and is unaffordable. Long-term poverty reduction must come from job creation, not endless grants.
In order to plug the fiscal hole, BOSA has identified spending cuts that will free up at least R76 Billion to fund these priorities.
- Freeze Middle & Upper Management Hiring – Save R16 billion per year. The public sector wage bill is R721 billion. A hiring freeze on non-essential middle and senior management vacancies would result in significant savings without affecting service delivery.
- Reduce State-Owned Enterprise (SOE) Bailouts – Save R6.6 billion per year. SOE bailouts have cost R331 billion over the past decade. BOSA proposes a 20% reduction in these bailouts to curb wasteful expenditure.
- A 2% cut in spending – including streamlining administrative and executive costs – by provincial government would save up to R15.3 billion per year. The current provincial government structure is bloated and inefficient. A streamlined system would reduce duplication and improve service delivery.
- Close Unnecessary Diplomatic Missions – Save R1 billion per year. South Africa spends nearly R5 billion on diplomatic missions worldwide. Reducing embassies and high commissions by 20% would eliminate unnecessary expenditure.
- Reduce Cabinet Size – Save R3.9 billion per year. Merge the Department of Small Business Development with Trade and Industry to eliminate duplication (R2.4 billion saved) Eliminate the Department of Planning, Monitoring, and Evaluation by integrating its functions (R1 billion saved). Abolish Deputy Minister positions, which add cost without clear benefits (R500 million saved).
- Abolish VIP Protection for Politicians – Save R2 billion per year. The VIP Protection Unit costs taxpayers R2 billion annually. This must be redirected to funding public safety initiatives.
- End the Ineffective Employment Tax Incentive (ETI) – Save R6.6 billion per year. The ETI has failed to deliver significant job creation benefits and is often exploited by businesses. Eliminating the subsidy would free up billions for more effective employment initiatives.
- Consolidate Government Marketing Entities – Save R5 billion per year. Multiple government agencies currently handle marketing separately. Merging Brand SA, SA Tourism, Trade Investment SA, Export Marketing, and DIRCO’s foreign marketing operations into a single agency would cut waste.
- Reform the Road Accident Fund (RAF) – Save R20 billion per year. The RAF is plagued by financial mismanagement and fraud. Implementing stricter eligibility criteria and capping payouts for high-income earners would reduce costs significantly.
Tomorrow’s budget will reveal whether government is committed to responsible economic management or remains trapped in wasteful spending and mismanagement.
This is the opportunity to break from the past, restore fiscal discipline, and set South Africa on a path to growth and prosperity. If ever there was a time for bold, decisive action, it is now.
Media Statement by
Roger Solomons: BOSA Acting Spokesperson
Tuesday 11 March 2025
Media Enquiries:
Roger Solomons – BOSA Acting Spokesperson – 072 299 3551