Peoples’ Budget says:
Thumbs up to:
BUT
* spending per person increase of 8%
* the 13% growth in spending on basic services.
The allocation of funds to local government must take into account the massive differences in access to income from rates and services.
* the decline in military spending
* the increase in the budget for land reform by close to two thirds
Much more funds needed in future and proper support required after people have been allocated new land.
* 1,5% increase above inflation for social grants
Still many unemployed people receiving no grants at all. People’s Budget wants the basic income grant and in the interim for the child support grant to be given up to the age of 18.
Manuel’s R13,5 bn tax break has brought some of you a wage increase!
If you earn between R3333 and R6600 per month you will pay R75 less tax per month. That’s like getting a 2,25% wage increase if you earn R3333 per month.
But bad news if you earn less than this – no increases for you because you don’t pay any tax on your wages anyway and from March 1, you will pay 10% more to drown your sorrows or blow them away with billows of smoke!
The People’s Budget Coalition, a group consisting of Cosatu, the SA Council of Churches and the SA NGO coalition, has called on Manuel to in future introduce a multiple-rate VAT system rather than reducing personal income taxes.
“Half of all workers earn too little to pay income tax, so they do not benefit at all from the cuts,” it said. A multiple-rate VAT system, found in “most other countries”, puts a higher tax on luxuries while reducing it on necessities. This would favour the poor.
The coalition is also worried about the inability of certain government departments to spend money allocated to them as well as Manuel’s statement that non-core state assets will be privatised.