Note to editors: The following speech was delivered today by BOSA Leader, Mmusi Maimane MP, during the debate on the Fiscal Framework.
Today, we are called upon to make a responsible decision. That’s what citizens expect from us in this House as public representatives.
Responsible decisions for the people of South Africa. A decision that rises above political posturing and speaks to the pressing needs of the people of South Africa.
The passing of this Fiscal Framework is not about partisan victories or defeats. It is about ensuring that our country does not slide further into economic and fiscal crisis.
Let us be clear: BOSA is not offering unconditional support. If there’s no real progress in the next 30 days, we won’t support the upcoming bills that give effect to the budget. Those being the Division of Revenue Bill, Appropriations Bill and the Tax Bill.
Our conditions are for a reversal of the VAT increase, for a review of spending to find cuts to raise revenue, and the adoption of a Growth Charter.
Madam Speaker,
This is not a good budget. It is a budget that places an even greater tax burden on South Africans through VAT and indirect income tax hikes. It is a budget that fails to address our structural economic challenges.
It assumes a 1.8% growth rate without any meaningful reforms to support such an outcome. It does not effectively curb wasteful expenditure. It does not improve education. It does not create jobs.
But we are not faced with a choice between good and bad. We are faced with a choice between bad and worse. And the worst outcome today would be to fail to pass a budget at all.
Yesterday’s market reaction to political uncertainty told us a very clear story: South Africa cannot afford instability.
While the ANC and DA continue their political manoeuvring, the financial markets recorded net losses. Every South African felt the consequences of this uncertainty in their pockets.
BOSA will not add to this instability. That is why we are using our votes today to pass this Fiscal Framework—not because we endorse it, but because the alternative is a disaster South Africa cannot afford.
We remain resolute in our opposition to reckless spending. The R20 billion allocated to the National Empowerment Fund is a prime example of misdirected priorities, and we will continue to fight against it.
On growth, two immediate actions are necessary.
First, South Africa must strike a new economic deal with the United States, a country with companies ready to invest billions but currently lagging behind in engagement compared to other nations.
Strengthening economic ties with the U.S. would not only improve South Africa’s trade balance but also boost foreign direct investment (FDI).
Second, it is essential to pass legislation that facilitates and encourages investment in the economy, creating a more business-friendly environment that attracts both local and international investors.
We are also clear that expenditure must be reviewed to ensure the most efficient use of public funds. That is why, as Chair of the Appropriations Committee, I will engage the GNU in good faith to drive these critical discussions.
There are immediate steps we must take to improve this budget. We support recommendations from the Standing Committee on Finance to remove VAT increases by the MTBPS. We must also explore alternative revenue sources, such as designating online gambling as a sin tax.
This vote is the first of three in the budget process. When BOSA votes in support, it is not a blank cheque. We will not vote in the other bills if our conditions are not met.
This is not a fait accompli, it is the start of a process to pass a budget that works for South Africans, gets South Africans working, and gets our economy working.
This is not the end—it is the beginning of a process to pass a budget that works for South Africans, gets South Africans working, and gets our economy back on track.
Media Statement by
Roger Solomons: BOSA Acting Spokesperson
Wednesday 02 April 2025
Media Enquiries:
Roger Solomons – BOSA Acting Spokesperson – 072 299 3551