DA calls for review of govt expenditure ahead of Budget speech

The DA is painting a bleak picture for taxpayers as Treasury looks for ways to counter slow economic growth and repay it's more than R2.2 trillion debt.

FILE: Finance Minister Pravin Gordhan delivering his national Budget speech in Parliament on 24 February 2016. Picture: GCIS.

CAPE TOWN – The Democratic Alliance (DA) is predicting an increase in personal taxes when Finance Minister Pravin Gordhan tables his budget on Wednesday.

Revealing budget forecasts at Parliament, the official opposition said South Africans are going to feel the pinch this year as Treasury looks to plug a R28 million fiscal hole.

The party is calling for a comprehensive review of government expenditure and spending priorities.

The DA is painting a bleak picture for taxpayers as Treasury looks for ways to counter slow economic growth and repay it's more than R2.2 trillion debt.

It's predicting a downward revision of economic growth to 1.1% and believes personal income tax will be raised by 1%.

A new tax bracket for individuals earning more than R1.5 million could also be on the cards, says the DA's David Maynier.

“The minister’s hands are effectively tied behind his back. He has very little political, fiscal and policy space in which to deal with the economic crisis in South Africa.”

The DA says that's why it's calling for a more comprehensive review of government spending.

(Edited by Masechaba Sefularo)