UDM Deputy President Nqabayomzi Kwankwa Reflects: 'It's Like Selling All Your Prized Possessions to Feed the Family'

UDM Deputy President Nqabayomzi Kwankwa Reflects: 'It's Like Selling All Your Prized Possessions to Feed the Family'

By Xolani Qotoyi

published on 20 July, 2024

Following the announcement of R150 billion being extracted from the Gold and Foreign Exchange Contingency Reserve Account (GFECRA) by Finance Minister Enoch Godongwana during the 2024 budget speech, UDM member Nqabayomzi Kwankwa has expressed significant concerns.

In his speech, Minister Godongwana revealed that R150 billion will be transferred from the GFECRA to the national treasury. This move aims to reduce debt servicing costs by R33 billion over the Medium-Term Expenditure Framework (MTEF) period. 

For the 2024-25 financial year, the budget allocates R6 of every R10 collected to education, healthcare, social protection, community development, and other aspects of the social wage bill. This allocation is intended to address long-standing issues, such as the lack of funding for school sports. The government plans to invest R35.9 billion into the arts, culture, sports, and recreation sector, aiming to boost school sports, preserve cultural heritage, and promote diversity.

Minister Godongwana also emphasized the importance of public servants' contributions. Over R18 trillion will be allocated to increase public servants' salaries by 7.5% over the next four years. Additionally, social transfers will rise from R283.4 billion in the previous fiscal year to R331.5 billion by 2026-27.

Amid rising costs for basic and social services, declining economic growth, and high borrowing costs, municipalities are struggling financially. Consequently, funds raised nationally will be divided among national, provincial, and local governments, with 48% allocated to the national level, 42.2% to the provincial level, and 9.8% to local governments.

Reactions to the Budget Speech

Minister of Health Joe Phaahla expressed satisfaction with the budget, noting the substantial funds allocated to the department. "That R1.6 billion is not only for doctors but will also fund the entire range of healthcare professionals, including nurses, physiotherapists, and pharmacists," Phaahla said.

Tax Commissioner Edward Kieswetter reflected on the state of the economy, stating, "The economy is stuck." Despite some improvements in the numbers, Kieswetter highlighted ongoing challenges with Eskom and Transnet, which are not performing optimally.

UDM Parliament member Nqabayomzi Kwankwa criticized several aspects of the budget. He labeled the R100 increase in social grants as a tactic by the ruling ANC to sway voters ahead of the national elections. Kwankwa remarked, "It’s like selling all your prized possessions to feed the family. The increase is a strategic move, with R90 now and R10 in October, aiming to secure votes."

Kwankwa also criticized Minister Godongwana's strategies as outdated, claiming they echo proposals made over 14 years ago by former President Thabo Mbeki.

The pressing question remains: Will these election-driven tactics effectively address South Africa's challenges? Are the proposed interventions sufficient, or does the rise of numerous political parties indicate a need for a change in governance?