Budgets Revenue-Generating Measures Spark Concern for Citizens, Warns DaVinci Institute

The DaVinci Institute has raised alarms over the potential impact of the budget’s revenue-generating tactics on ordinary citizens, particularly highlighting a proposed fuel levy hike. Finance Minister Enoch Godongwana recently unveiled plans for the first fuel levy increase in three years, slated to go into effect on June 4. The institute voiced worries that the rise, amounting to 16c/l for petrol and 15c/l for diesel, could raise living costs, affecting essentials like food and transport. With an estimated revenue boost of R3.5bn to R4bn expected from the fuel levy hike, concerns grow over job creation and economic growth sustainability in South Africa. The institute emphasized the need for a clearer strategy to nurture job opportunities and bolster the economy to support the working-age populace. Despite the National Treasury’s revised budget unveiling spending cuts and lowered revenue forecasts due to reduced GDP growth projections, challenges loom around debt servicing costs consuming a significant portion of revenue. The call for increased foreign direct investment (FDI) to achieve growth targets and alleviate unemployment underscores the importance of fostering an investment-friendly environment through robust fiscal and industrial policies. Highlighting governance lapses at local government levels, the institute stressed the imperative for accountability, transparency, and efficient spending oversight to ensure tangible economic gains from the budget. The article concludes by underscoring the necessity of effectively executing bold fiscal strategies and aligning them with the medium-term development plan to drive sustainable economic growth, optimize taxation, attract FDI, and uphold responsible governance in South Africa. (Source: TimesLive)