‘Temporary Band-Aids’: Parties welcome fuel levy cut but criticise mini-budget relief

Several political parties welcomed Finance Minister Enoch Godongwana’s mini-budget, with the fuel levy reduction seen as great news.

Delivering his medium-term budget policy statement in parliament yesterday, Godongwana bowed to pressure to reduce the fuel levy to mitigate recent exorbitant fuel prices.

He also increased the allocation to fight gender-based violence (GBV) and to hire at least 3 000 social workers to handle GBV issues.

Parties welcome fuel levy relief but question its duration

United Democratic Movement deputy president and parliamentary leader Nqabayomzi Kwankwa said Godongwana’s figures provide good ground for optimism.

“The resources to be saved must go to areas of poverty.”

But the parties felt the fuel levy relief was short-lived as it applied for only two months.

Rise Mzansi national leader Songezo Zibi said though the mini-budget, along with the fuel levy reduction, is a “move in the right direction”, the relief is too short.

The party wants the minister to do more to cover the shortfall in his main budget in February.

While praising several key allocations and policy steps, the party said temporary measures were insufficient to address SA’s cost-of-living crisis.

“South Africa cannot build a resilient economy on temporary Band-Aids.”

Rise Mzansi, MK party and ATM reject budget

Rise Mzansi said both the uMkhonto weSizwe (MK) party and African Transformation Movement (ATM) rejected the budget, saying it fell short.

MK party MP Kwenzokuhle Madlala said the budget failed to address the plight of the poor.

ATM parliamentary leader Vuyolwethu Zungula called it disappointing and criticised President Cyril Ramaphosa’s unfulfilled promise to hire additional labour inspectors to police the employment of illegal migrants.

Election ploy?

However, Godongwana said labour inspectors would be increased to ensure companies that hire illegal immigrants were caught.

Government would also consider strengthening border inspectors and immigration officers, he said.

The United Africans Transformation’s Bantu Mahlatsi said the fuel levy decrease was nothing but an electioneer ploy by the government.

“It was done for the purpose of the vote next month.”

Unemployment concerns

Political analyst Sandile Swana said Godongwana’s approach – focusing on massive infrastructure investment with increased private sector participation – would please Operation Vulindlela advocates in big business.

“This has been the aim of Operation Vulindlela, and that is what the government are doing.”

But Godongwana’s forecast of 2% GDP growth by 2029 meant unemployment would continue to escalate, Swana said.