logo
DA challenges Tshwane's budget as Deputy Mayor highlights support for the poor

DA challenges Tshwane's budget as Deputy Mayor highlights support for the poor

IOL News15-05-2025

DA spokesperson on finance, Jacqui Uys criticises City of Tshwane Deputy Mayor Eugene Modise's 2025/26 "pro-poor" budget speech.
Image: Jacques Naude/ Independent Newspapers
The DA in Tshwane has criticised Deputy Mayor Eugene Modise's 2025/26 "pro-poor" budget speech, claiming it prioritises the ANC's image over serving residents.
This is despite Modise's emphasis that the budget considers poor households struggling to pay municipal rates and services.
'Tshwane is home to residents who face many social ills, including unemployment, poverty and limited access to essential services. As a caring government we have ensured that we provide a safety net for our most vulnerable residents,' Modise said.
For the 2025/26 financial year, he said, the indigent threshold has been revised upwards from R150 000 to R250 000 under the new general valuation roll.
'This change will extend its support to approximately 180 000 households that fall within this threshold,' he said.
DA spokesperson on finance, Jacqui Uys, said: 'This budget is not serving the residents of Tshwane but becomes part of the ANC's quest to look good on paper but fail in its real mandate – delivering services.'
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
She said the DA will continue to push for a budget that raises the property tax exemption from the current R150,000 to R450,000.
She argued that such a budget would bring relief to residents facing sharp property value increases and help poorer households access the city's free services for indigent families.
'The Deputy Mayor's budget also confirms the introduction of a waste levy. As per the draft budget, this new levy raises the city's revenue from waste collection to R2.4 billion for the financial year, up from the current year's R2bn,' Uys said.
Modise announced a fixed charge of R194 per month for households using private refuse collection, saying it is aimed at improving urban cleanliness and waste management.
He said: 'Much has been made of this proposed cleansing levy. It must be noted that this levy is not new or unique to Tshwane. A cleansing levy was introduced some years ago and was duly taken on judicial review in order for its implementation to be regularised.'
Uys noted that the draft budget proposed reducing waste collection and illegal dumping spending from R2.1bn to R2bn in the next budget cycle.
"This clearly indicates that the intention of this new levy is not to ensure a cleaner city but rather the introduction of yet another tax to use the residents of Tshwane as a stop-gap to improve the city's financial position,' she said.
Herman Mashaba, ActionSA president, welcomed the tabling of the first fully-funded budget since 2022, saying it reaffirms the coalition's commitment to good governance, financial stability, and improved services for all residents.
He said: 'In recognition of the new administration's growth-focused approach, ActionSA welcomes the R780 million allocated to Economic Development and Spatial Planning. This is aligned with the City's economic revitalisation strategy, which aims to attract over R17bn in investment and create 80 000 jobs.'
He said the budget acknowledges the city's severe infrastructure challenges, resulting from years of mismanagement and underfunding, and represents a positive shift through targeted investments.
Modise pointed out that the budget allocates R1.4bn for repairs and maintenance to foster a culture of asset upkeep.
For example, he said, Region 1 will receive R27.42m for projects like the Soshanguve IA and W substations' refurbishment, while Region 2's R23m allocation will support the Pyramid Substation and public lighting initiatives.
rapula.moatshe@inl.co.za

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

South Africa's economy faces an uphill battle as growth stagnates
South Africa's economy faces an uphill battle as growth stagnates

IOL News

time17 minutes ago

  • IOL News

South Africa's economy faces an uphill battle as growth stagnates

South Africa's economic growth has plummeted to just 0.1% in the first quarter of 2025, following a revised 0.4% gain in late 2024, raising concerns about the country's economic future amid revised forecasts from the South African Reserve Bank Image: Leon Muller Independent Newspapers South Africa's economy remains under significant strain, with gross domestic product (GDP) growth lagging behind population increases over the past decade. According to the OECD Economic Survey: South Africa 2025, economic output grew by a mere 0.7% annually in the past ten years. This slow pace resulted in stagnating or declining GDP per capita, further deepening the country's entrenched unemployment and inequality. The OECD warned that 'economic growth has averaged only 0.7% per year over the past decade, below that of the population,' a key factor in the country's deteriorating living standards. Public debt, which stood at 31.5% of GDP in 2010, is projected to balloon to 77% by 2025, increasing debt servicing costs and limiting fiscal space for much-needed public investment. Electricity and infrastructure bottlenecks: dragging growth down One of the central themes in the OECD's report is the impact of structural constraints on productivity. 'Persistent insufficient access to electricity, and rail and port bottlenecks have weighed on activity, investment, exports and living standards over recent years,' the report noted. In 2023 alone, electricity shortages shaved 1.5 percentage points off GDP growth. Though 2024 has seen improvements in power availability due to reforms and increased independent renewable energy generation, supply remains unreliable. The OECD stressed the urgent need to 'accelerate renewable electricity generation, expand the transmission grid, and redefine the role of municipalities and Eskom in electricity distribution'. Reform momentum is building - but not fast enough While the government's Operation Vulindlela programme has shown promising results, with 74% of Phase 1 reforms completed or on track, the report made it clear that the pace and scope of reforms need to intensify. The next phase aims to address local government inefficiencies, spatial inequality, and digital transformation. Lilas Demmou and Nikki Kergozou, the lead authors of the report, said, 'It is vital to maintain the momentum of ongoing reforms to unlock South Africa's economic potential and promote inclusive growth.' The authors added that a reliable electricity sector, more competitive markets, and increased private investment are critical for sustained growth. Fiscal policy: walking a tightrope South Africa's fiscal picture remains precarious. The 2025 fiscal deficit is forecasted at 6.6% of GDP. Elevated debt servicing costs, projected at 5.2% of GDP are limiting the government's ability to fund much-needed social spending and public investment, the OECD report stated. To reverse this trend, the OECD called for 'a continued consolidation strategy' through stricter spending controls, enhanced tax compliance, and reforms to state-owned enterprises (SOEs). The report suggested expanding the tax base by reducing personal income tax expenditures, raising VAT, and improving municipal property tax collection. The authors argued for protecting infrastructure and social spending while prioritising fiscal discipline. 'Boost public investment, especially in core infrastructure such as electricity, water, and rail,' was one of the central recommendations. Employment crisis: a key drag on growth South Africa's labour market performance is among the worst globally. The employment rate stands at just 37.4%, while the unemployment rate, particularly among the youth, remains alarmingly high. The OECD noted that 'the unemployment rates for young people, at 60%, and for women, at 34%, are notably higher than for the total population'. The report outlined a multi-pronged strategy to boost employment: easing regulatory burdens on small businesses, simplifying licensing, and expanding vocational education. Urban planning reforms are also essential, as long and costly commutes exclude many from job opportunities. 'Promoting densification and reducing transport times and costs is vital to connect South Africans with jobs, calling for housing near public transport and development corridors, promoting rental housing near city centres and reforming restrictive building regulations," the report revealed. Inflation target and monetary policy On the monetary side, inflation has moderated, allowing the South African Reserve Bank (Sarb) to ease interest rates in late 2024. However, the report suggested reconsidering the inflation targeting framework. South Africa's current 3–6% band is broader and higher than those of its peers. The OECD recommended narrowing the band to better anchor inflation expectations and enhance international competitiveness. 'Reducing the inflation target and its band could more closely align inflation with that of trading partners,' the OECD proposes, adding that such a change must be 'carefully timed, coordinated across government, and clearly communicated'. Path Forward: Growth with Inclusion To raise the country's potential growth rate beyond the current 1.2%, the OECD outlines a bold yet actionable roadmap: Accelerate infrastructure investment , especially in electricity, water, and logistics. Widen the tax base to ensure fiscal sustainability. Reform labour markets to boost job creation and formal employment. Target inflation more precisely to support competitiveness. Combat corruption and enhance SOE performance to rebuild public trust and attract investment. Demmou and Kergozou said, 'Strengthening competition, reducing corruption, and boosting private-sector investment are key to enhancing economic dynamism, reducing unemployment and alleviating poverty'.

Health association takes legal action against NHI Act
Health association takes legal action against NHI Act

Mail & Guardian

timean hour ago

  • Mail & Guardian

Health association takes legal action against NHI Act

File photo by James Oatway The Health Funders Association this week launched a legal challenge against the President Cyril Ramaphosa The ANC, which governed the country solely until being forced into a national coalition after the polls, says the NHI is intended to provide universal and comprehensive health coverage to all South Africans. But it has faced fierce criticism from the private healthcare sector and parties such as the Health Funders Association chief executive Thoneshan Naidoo acknowledged this week that 'South Africa needs a healthcare system that delivers equitable, quality care to all [and] we fully support that vision.' But he added: 'In its current form, and without private sector collaboration, the NHI Act is fiscally impossible and operationally unworkable, and threatens the stability of the economy and health system, impacting everyone in South Africa.' The association filed its application at the Pretoria high court, joining five other medical entities that are fighting the law. The It argued that the framework in its current form was not fiscally feasible and would also have adverse effects on South Africa's healthcare and economic outcomes. 'The steep tax increases required to fund the NHI will reduce disposable income, curb consumer spending across all sectors of the economy and may well trigger an exodus of high-income taxpayers,' it said. 'At the same time, destabilising the private healthcare sector will deter investment, put jobs at risk, and slow The association's position is premised on a report by Genesis Analytics, published this week, which showed that the 'NHI Act requires unsustainable tax increases while reducing healthcare access for medical scheme members'. It said the analysis also revealed South Africa's racially diverse medical scheme membership, in which more than 68% of members are black, Indian or coloured, and up to 83% earn less than R37 500 a month. 'The proposed NHI would, therefore, disproportionately impact working-class households who currently rely on medical schemes for quality care.' Modelling by Genesis Analysis showed that it would be impossible to raise the funds required for NHI, 'even under the most optimistic assumptions'. 'For NHI to fund a level of care equivalent to what medical scheme members currently receive, as government has indicated is the intention, the Genesis model shows that personal income tax would need to increase by 2.2 times (a 115% increase in tax) from the current average rate of 21% to an average of 46% of income.' This, it said, would push marginal tax rates in the lowest income bracket from 18% to 41%, and in the highest bracket from 45% to 68%. Building its case, the association said the Genesis model projected that more than 286 000 additional healthcare professionals would be required to fulfil the NHI vision. This is more than twice the number of general practitioners, nurses and pharmacists and three times the number of specialists. 'NHI will therefore place significant pressure on healthcare workers and addressing these capacity gaps will require significant time and investment,' the association said. Naidoo added that South Africa does not have enough skilled workers to deliver the NHI's mandate. 'By driving down service tariffs, the NHI risks accelerating the emigration or exit of healthcare professionals from the sector altogether.' The country is already facing a medical professional 'brain drain'. A survey conducted last year by the South Africa Medical Association, which represents approximately 17 000 doctors across South Africa, showed that as many as 38% of its members intended to leave the country in response to the implementation of the NHI scheme. Last month, Ramaphosa defended the Act after the Board of Healthcare Funders, which represents most private medical schemes, said he flouted his constitutional duty by failing to scrutinise its constitutionality when he signed the NHI into law. It added that the president ignored submissions that pointed to the patent constitutional defects in the legislation. The Pretoria High Court ruled in favour of the board. Ramaphosa launched an appeal, arguing that the court lacked jurisdiction in the matter and erred in finding that his decision to sign the new law was reviewable. The court found no merit in his argument on the separation of powers and said the step of assenting to a Bill was but part of a lawmaking process that was a reviewable exercise in public power.

EFF loses fuel levy court challenge
EFF loses fuel levy court challenge

Mail & Guardian

timean hour ago

  • Mail & Guardian

EFF loses fuel levy court challenge

EFF leader Julius Malema. (X) The The party's application, lodged against Finance Minister The EFF argued that it was unlawful because it was not introduced through a Money Bill, as required by section 77 of the Constitution. The party described the court's ruling as 'a betrayal of the poor and the working class' and accused Godongwana's office of sidestepping democratic procedures in the management of public finances. 'Taxation without representation is arbitrary and unconstitutional,' the party said. The ANC-led government of national unity was doing everything in its power 'to protect the interests of those who continue to benefit from the apartheid economy, while subjecting the masses of our people to economic misery'. Godongwana has insisted that he acted within existing legislation. In his He added that it had been frozen since 2021, and the increase was necessary to preserve the real value of the levy in the face of inflation and declining revenue. He warned that halting the increase would result in a R3.5 billion shortfall for the fiscus, necessitating further borrowing, spending cuts or alternative tax increases. 'The fuel levy is not a new tax. It is a regulatory adjustment falling under existing legislation and its increase does not require a Money Bill,' Godongwana argued in the affidavit, adding that freezing the levy any further would compromise the integrity of the budget and limit the state's ability to deliver services. The court's ruling allowed the increase to proceed and, on Wednesday, fuel prices rose accordingly for the month of June. However, a dip in global oil prices and modest strengthening of the rand brought slight relief for motorists. EFF leader 'It is not the EFF that got rejected; it is the people of South Africa who lost. When you increase fuel, you increase everything, transport, food, the cost of living. Our people are already suffering. This is an extra blow to the working class,' he said. The EFF would not abandon the matter, Malema said, indicating that it was considering further legal avenues, as well as a legislative push in parliament to close loopholes that allow the treasury to act unilaterally. EFF treasurer general Omphile Maotwe, who has led the party's engagements on budget matters, reiterated its position that the matter should have come before parliament. 'The levy seeks to recover revenue after the courts invalidated the unlawful VAT increase proposed earlier this year. By using the Customs and Excise Act to bypass section 77 of the Constitution, the minister is undermining the democratic function of parliament and the people's right to participate in fiscal policy decisions,' she said. Maotwe said the EFF would submit proposals to amend the relevant sections of the Customs and Excise Act and the Money Bills Amendment Procedure and Related Matters Act to ensure no future taxation could be implemented without a parliamentary vote. While the EFF's application was dismissed, legal observers say the court did not definitively rule on the constitutional questions raised, which could leave the door open for further challenge. While the government is technically within its rights to use the Customs and Excise Act to amend levies, the broader question of public accountability in tax decisions remains unresolved, constitutional law expert professor Pierre de Vos said. 'There's a grey area here. The Constitution requires that money bills originate in the National Assembly, but there are long-standing statutes like the Customs and Excise Act that give the executive certain powers. Whether those powers are now unconstitutional is a debate we may see return to the courts.' The EFF said it would use all platforms, legal and political, to hold the treasury accountable. 'We will not rest while unelected officials continue to impose taxes behind the back of parliament. The people must have a voice in every cent that is taken from their pockets,' Malema said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store