Budget 2023
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Nene must squeeze 'bloated' Zuma govt spend - Cope

Cape Town - In his mini budget Minister of Finance Nhlanhla Nene must inflict pain on his fellow politicians, not on the people of the country, Congress of the People (Cope) spokesperson Dennis Bloem said on Wednesday.

In Cope's view Nene must free resources for growth and development by "squeezing Zuma-side expenditure".

"Even though this is a mid-term review of budget performance, Nene should use the opportunity to reduce the flow of funds to President Zuma for consumption-side expenditure. If he fails to do that, taxes will increase next year and a 'Zuma must fall campaign' will certainly sweep through the country," said Bloem.

"The national mood has changed. Nene can play for time until the local government elections are over, but that will only accentuate the crisis."

He said that since 2009, government under Zuma has become "massively bloated".

"As a result of heavy consumption-side expenditure by government, our public finances are in a very unhealthy situation and show signs of becoming even more anaemic and sickly. This is indeed a watershed," said Bloem.

Although Cope accepts that the world economy is still struggling and is affecting SA's own economy, the party believes Nene could take a lead in driving the National Development Plan "with his foot down on the accelerator".

Cope also suggests that Nene demand the reversal of what it calls "stifling visa requirements", and that he insist on complete adherence to the Public Finance Management Act and the Municipal Finance Management Act.

"Poor, confusing and ill-advised policy choices are adding to our economic woes and, therefore, impacting negatively on tax revenue," said Bloem.

"The national debt is now R1.74trn. Interest cost this year will be R116bn. The rising debt level is indeed the crux of the problem. Nene has identified the enemy. Now he must gallantly slay it with one sharp sweep of his sword."

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