The 2024 budget speech creates a stagnant economy for South Africa. Our national debt has skyrocketed, and it can no longer be sustained.
One cannot borrow oneself out of debt; you must perform your way out of it. The residents of South Africa have had enough of the misuse of funds and corruption. Year after year, everyone is expected to pay more without reaping the benefits.
During the budget speech, Finance Minister Mr. Enoch Godongwana announced proposed tax increases totaling R15 billion in 2024/25. The government currently receives R738.7 billion in tax revenue from personal income. The Minister also mentioned that there will be no increases in fuel levies or the road accident fund levy, as was the case in 2022 and 2023. This will bring tax relief to the public.
TLU SA warns the public not to see the budget as anything less than just an instrument of the ruling party. The budget speech is supposed to be an explanation of “the tax money you give us, will be used for your benefit in the following way.” However, this is certainly not the case for the agricultural industry.
R6 billion has been allocated in the medium-term expenditure framework to support resettled farmers through land redistribution and tenure reform programmes. Additionally, R27.7 billion has been allocated to agriculture and rural development.
So, the question to the ruling party is: What is being done with our money, and where is the support for our commercial farmers?
“Our country’s budget is supposed to create an environment that stimulates economic growth by providing opportunities for business development. For this, we need a functioning infrastructure. With every budget and in every election year, we are promised that our roads and railways will receive attention, but we have not seen it yet,” says Bennie van Zyl, TLU SA General Manager.
If we focus on economic growth and creating fertile ground for new businesses, we will address issues such as unemployment. It will also mean allocating less money to social grants.
TLU SA refers to their request to the government in December 2023: “Empower agriculture to be self-sufficient by allowing them to save tax-free in good years. Thus, the country’s food providers will determine what they can do for themselves in the absence of a government during crises.”
Minister Godongwana concluded his presentation by reminding South Africans that the main message of the 2024 budget speech is that the government is doing its best with very limited resources. However, TLU SA wants to respond by saying that, if experts, and not those who led us into this situation, continue to focus on growth and sustainability, we could avoid these circumstances.
