By: Zilungile Mkhize
The Democratic Alliance (DA) says it will intensify calls for a comprehensive government spending review in a bid to curb wasteful expenditure, eliminate corruption, and improve fiscal discipline.
This follows Finance Minister Enoch Godongwana’s decision to withdraw a planned 0.5-percentage-point increase in value-added tax (VAT), which was due to take effect next Thursday. The reversal of the VAT hike, initially introduced as a measure to bolster state revenues, is expected to leave a R75 billion shortfall in the national fiscus.
Helen Zille, chairperson of the DA’s Federal Council, welcomed the move but stressed that the government must now focus on cutting unnecessary and inefficient spending rather than seeking additional revenue from already overburdened taxpayers.
“The DA has long argued that South Africa’s fiscal crisis cannot be solved by raising taxes alone. What we need is a thorough review of public spending to identify and eliminate waste, inefficiencies, and the rampant corruption that continues to cripple service delivery,” Zille said in a statement.
The VAT increase had drawn criticism from civil society and opposition parties, who argued that it would disproportionately impact low- and middle-income households amid rising living costs and persistently high unemployment.
South Africa’s public finances remain under severe pressure, with mounting debt and sluggish economic growth limiting the government’s ability to fund key programmes.
Economists have warned that without meaningful structural reforms, including more prudent spending, the country risks further credit downgrades and reduced investor confidence.
The DA has proposed a line-by-line review of all departmental budgets, alongside strengthened parliamentary oversight, to ensure that taxpayer money is used effectively and transparently.
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