CAPE TOWN – The Federation of Unions of South Africa (Fedusa) is outraged that Finance Minister Tito Mboweni prepares to deliver his Medium-term Budget Policy Statement (MTBPS) on the back of a tax revenue shortfall of an estimated R50 billion for the current financial year.
In a statement released ahead of Mboweni’s MTBPS Fedusa said it was deeply disheartened about the effect the massive revenue shortfall will have on Mboweni’s ability to address key economic constraints.
“Whilst the mini budget is once again being presented against the backdrop of a basket of unfavorable factors, the lack of efficiency and optimal functionality of the South African Revenue Services (Sars) requires questioning, as the R1.422 trillion for the fiscus is now only, over the past five months tracking at 37 percent of the target, at R519bn.
“Fedusa, however, cautions and calls on Mboweni to save billions of rand wasted on exorbitant ministerial salaries and perks in order to drastically reduce the public sector wage bill when he presents the MTBPS,” said Fedusa.
The union said it believed that it was irrational for the state to continue fudging policy failure by hiding behind outdated ministerial handbooks that allows it to pay unreasonably high salaries and other fabulous luxuries to ministers and other senior officials at national, provincial and local government levels; in the context of South Africa as a developing nation with a plethora of social challenges such as high unemployment rates, economic inequality and severe poverty.