EFF statement on the budget statement by Finance Minister Pravin Gordhan
23 February 2017
The EFF notes the budget policy statement delivered by the Finance Minster Pravin Gordhan. We welcome the broader interventions to secure the incomes of the poor and unemployed though increases in Social and Old Age grants. We also welcome relief that “will be provided in the affordable housing market through an increase in the threshold above which transfer duty is paid from R750 000 to R900 000.”
The minister’s budget statement also seeks “to support higher density housing”, as a result “subsidies for social housing have been rationalised and R600 million over the medium term is re-prioritised to the Social Housing Regulatory Authority for investment in rental housing units.” On Higher education, “a substantial additional allocation to higher education is again proposed, adding R5 billion to the R32 billion previously announced.” All these interventions will allow the poor leverage in an authorized hostile environment.
We celebrate the new conditional grant to provinces; the early childhood development grant. This is in line with EFF policies that in each and every ward in the country, there must be an early childhood development centre accessible to all children for free. “The grant is expected to increase spending in the Children sub-programme within the Welfare Services Policy Development and Implementation Support programme at an average annual rate of 99.8 per cent over the medium term.”
Also, the granting of a banking licence to PostBank must be supported and government institutions and businesses must take their accounts to PostBank to inspire confidence. In addition, PostBank must provide services to our people at an affordable rate and not be driven by profit greed.