DA calls for comment on Responsible Spending Bill as cost-of-living crisis bites hard
20 November 2022
As the cost of living crisis bites deeper and deeper into the pockets of South African households, government shows no sign of responding.
With 81% of households reporting that they cannot afford to put enough food on the table and transport costs stretching budgets beyond breaking point, the DA has proposed urgent relief measures to reduce the cost of the food basket and to tackle the high fuel price. These urgent interventions can bring immediate relief, if government better manages our public finances and spends responsibly.
Government debt will increase from R4.7 trillion to R5.6 trillion and debt servicing costs from R332 billion to R380 billion by 2025/26. This excludes the transfer of at least R200 billion of Eskom’s debt onto the national balance sheet.
Debt‐service costs have been the fastest growing item on the Budget while consuming an increasing share of GDP and revenue for the past two decades, and today, on average, 20 cents of every Rand collected in revenue every year will be needed to pay debt‐service costs. As a consequence, interest payments on accumulated debt have crowded out spending on essential public services that include policing, public health, and basic education among others.