MTBPS proves that ANC has run South Africa into bankruptcy

1 November 2023

Today's Medium-Term Budget Policy Statement (MTBPS) confirms that the ANC has finally run South Africa into bankruptcy.

Government debt is a runaway train, the debt burden of municipalities and public enterprises is becoming unbearable, and government's wage bill is totally out of control due to pressure from trade unions and an inflated public service.

The Minister of Finance, Enoch Godongwana, once again failed to effectively address the unsustainable wage bill today.

Instead, compromises were made through a give-and-take approach to service delivery priorities in a bid to afford the upward adjusted salary increases.

All while many officials make no contribution to service delivery and still earn much more than market-related salaries.

Government debt currently amounts to R5 000 billion, comprising 75% of the country's total GDP. The financing costs come to R354 billion. That is more than the annual budgets for the police, education or health.

The extent of government's debt problem is best illustrated by the fact that for every R5 tax collected, R1 goes towards financing its debt.

More bad news is that the budget for water and sanitation was cut back by R881 million, even though the country is plagued by serious water shortages and crumbling infrastructure.

Load shedding also quells any hope of economic growth. With the ANC's utter incompetence and obsession with damaging ideologically driven policy, the country is without prospects of improvement. The GDP growth for 2023 was adjusted downward to 0,8%.

In addition, ANC policy allows government to be exploited by paying much more for goods and services than is necessary.

Corruption and fraud are still endemic to the ANC and government is losing billions as a result, while simultaneously failing to put an end to it and hold offenders accountable.

Decisive and drastic cost cutting is needed to save money. Some examples of needless expenditure include the security services and overseas travels of the executive authority, in particular.

Economic growth is the only way to address unemployment and poverty, but it can only be achieved through structural reform and policy that creates a favourable environment to attract investments.

As it stands, there is not enough money to repair and develop the country's infrastructure.

No economic plan or intervention can do anything about this sombre situation. As long as the ANC remains in power, it is irreversible.

Nothing but the polls can save South Africa from utter ruin.

Issued by Wouter Wessels, FF Plus MP and chief spokesperson: Finance, 1 November 2023