Cutting ministerial perks not enough to fund R2.7 trillion budget, says ANC
ANC Secretary-General Fikile Mbalula during a media briefing at Luthuli House in Johannesburg on 13 March 2025. Picture: Spamandla Dlamini/EWN
JOHANNESBURG -The African National Congress (ANC) said cutting off ministerial perks would not have generated enough revenue to fund South Africa’s R2.7 trillion budget.
The party said raising value-added tax (VAT) by one percentage point over the next two financial years was the only solution for the government to continue funding its critical programmes.
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On Thursday, the ANC held a media briefing in Johannesburg expressing its support for the budget proposals recently tabled to Parliament by Minister of Finance Enoch Godongwana.
Among the many suggestions made by opposition parties as alternatives to raising VAT was shrinking the Government of National Unity (GNU) Cabinet and its perks.
ANC secretary general Fikile Mbalula has been a minister in three different portfolios.
Mbalula said there have been many cuts to ministerial perks over the years.
“Ministers used to drive cars in the range of R1 million, it was cut to R500,000. Perks like credit cards were taken away. Ministers are flying economy, that was cut as well from flying business locally. You only fly business internationally.”
Mbalula said while it’s important to cut government wastage, a tax hike was the only realistic intervention to sustain government revenue at the level required.