Finance Minister Tito Mboweni has asked South Africans to share ideas on how best to boost economic growth ahead of his Budget speech on Wednesday.
Tips were submitted via the Treasury website, and also tweeted to @TreasuryRSA with the hashtag #TipsForMinFin and #RSABudget2019.
Make your voice Count by sending your budget TIPS for Minister Mboweni's 2019 National Budget consideration. #TipsForMinFin #RSABudget2019 pic.twitter.com/3k0V6E5y5U
— National Treasury (@TreasuryRSA) January 24, 2019
Many of the comments on Twitter were concerned with action against government corruption.
To stimulate economic growth: massively boost confidence in SA by prosecuting corrupt government officials now. Not once the Zondo Commission is complete, but n.o.w. p.l.e.a.s.e. #TipsForMinFin #RSABudget2019 @OUTASA
— Tessa Moore (@tessamoore) January 24, 2019
Calls for policy certainty were also a popular suggestion.
#TipsForMinFin #Budget2019 clarify the Land issue and provide a stable framework for how and if it will be implemented. All this ambiguity is damaging investor confidence and making locals uneasy .
— Rameez (@Rameez90474403) January 24, 2019
Eskom
Following a painful week of loadshedding, the electricity provider was clearly top of mind. There were plenty of practical ideas to deal with the problems facing the troubled utility, particularly its struggles with non-paying clients.
@TreasuryRSA The Minister should consider redirecting budgeted funds (or part thereof) of municipalities the owe Eskom and water boards. Billions can be recovered instead of relying on municipalities to pay.#TipsForMinFin #RSABudget2019
— nonopha80 (@LutuliNkululeko) February 13, 2019
@TreasuryRSA #TipsForMinFinTo help change the culture of non-payment for electricity, reward regular payers with cash back in the form of Lotto tickets -- easy to finance, has real value and Escom can even hold back a percentage of any winnings :-)
— Willem Kempen (@willemkempen) February 7, 2019
#TipsForMinFin Open up the market for private energy producers to supply to Eskom. Let Eskom focus on infrastructure and distribution, and do not let them get any mote debt! Ditto on all parastatals, no more debt! It wastes money that could be invested with actual rewards.
— Jason Barber (@ComradeJason) January 24, 2019
Tax proposals
By far the most suggestions concerned proposed tax changes - with ideas ranging from a lower VAT threshold for small businesses to zero-tax free trade areas.
#TipsForMinFin try making BEE a carrot approach rather than a stick approach. Companies should pay income tax according to their BEE levels (less BEE, more tax), but open the economy for everyone to increase competitiveness. Government and public wins.
— marius van wyk (@marius_wyk) February 5, 2019
#TipsForMinFinVAT threshold should increase from 1 million to 1.5 million. That will help struggling SME's
— paula mendes (@paulame35726523) January 30, 2019
#TipsForMinFin Use retired CA's to do SARS investigations and give them 10% of what they recover
— Pierre Geldenhuys (@PierreGelden650) February 1, 2019
@treasury #TipsForMinFin #RSABudget2019 I am appealing to the SA govt to introduce an NHI Tax of R20.00 across the board for all employees earning more than 5000 per month effective from July 2018. Companies should pay R50 towards NHI per month,such contribution will help a lot
— Guda Mwandla (@guda179) January 25, 2019
@tito_mboweni please consider a tax rebate for households that have installed increased security measures to survive. It’s a costly business to be safe in S.A #budgetspeech #TipsForMinFin
— Suraya Asmal (@suraya_asmal) February 5, 2019
#TipsForMinFin we need transparency and honesty in South Africa esp when it comes to income and taxes. We need to fight scourge of corruption. Tax returns should be open and available for all to see. Like Norway and Sweden. Total transparency. #janteloven
— janet (@cronjeski) February 6, 2019
Create free trade zones with zero tax for companies exporting value added products. #TipsForMinFin
— Mert Sentarli (@afrikalizulu) January 25, 2019
@TreasuryRSA #TipsForMinFinCut tax on net profit for Companies with a turnover below 10mil to 15% and not the current 28%. This will allow SME's to employ more people and grow...
— Bazza (@justbazza77) January 24, 2019
Job creation
Social media users had some ideas to bolster the economic prospects of poor communities.
#TipsForMinFin Create community owned mini hydroponic/organic/greenhouse agricultural industries in rural areas, with strategic trading nodes equipped with infrastructure for refrigeration and transport. Match geographic areas/climate with suitable High Demand crops for export.
— Jason Barber (@ComradeJason) January 24, 2019
@TreasuryRSA use the underutilised army and its bases to set up youth training centres countrywide that provide technical skills training like construction, vehicle mechanics etc so they can work for themselves, grow the economy and instill discipline, patriotism #TipsForMinFin
— Matt (@Matthew71839425) January 24, 2019
#TipsForMinFin @tito_mboweni @TreasuryRSA please increase the Section12I budget over current R20b. At least another R10b. Currently it is fully allocated and it is effectively sending message to large manufacturing investors that we are closed for business. @the_dti
— Duane Newman (@Duane_Newman) January 25, 2019
Road Accident Fund
The Road Accident Fund, which funds claims from accident victims, is in severe financial problems, with its liability on track to reach more than R355 billion by next year. The RAF levy was hiked by 30c a litre last year to cope with this, and Mboweni is expected to increase the levy again this year.
There were some suggestions on how to deal with the RAF conundrum:
@TreasuryRSA Scrap the Road Accident Fund Levy by making it compulsory for every vehicle on SA roads to be insured. Give some back to the public, and fund the NHI with the balance #tipsforminfin #RSAbudget2019
— Richard Whitby (@richard87310966) January 27, 2019
@TreasuryRSA#TipsForMinFin#RSABudget2019@tito_mboweniThe Raod accident fund levy should be redirected to education or free technical skills training. The RAF fund must be stopped. It's being abused and not 4 this country right now. maybe in da future but not now
— Heman (@Heman13719700) January 25, 2019
Government finances
Tax revenue continues to disappoint, which could push the budget deficit to almost 5% of GDP. There were a number of ideas to reduce government spending.
#TipsforMinFin. Create a platform for the country to make recommendations for efficiency savings in National, Provincial & Local institutions. There are many ways the state can reduce spending by giving effect such a platform.
— Preggy Ramsing (@Ramsingp) February 5, 2019
#TipsForMinFin #RSABudget2019 The following areas can provide reductions in government expenditure: the country does not need a national airline, a standing army or airforce. It does need coastal patrols by a navy or coastguard though.
— Rob Charlton (@zeddarcee) January 25, 2019
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