ActionSA has warned that it expects nothing but fanciful words and superficial promises from the national budget scheduled to be tabled later in May, accusing the government of offering explanations lacking substance.
Speaking ahead of the budget speech on May 21, ActionSA MP Alan Beesley told Sunday World that the party was not optimistic about what would be delivered.
“Based on Budget 1.0 and Budget 2.0, as ActionSA, we do not believe there will be any radical changes, and such our expectations are not high,” said Beesley.
He explained that the country was in urgent need of bold and pragmatic steps to get the economy in motion, especially in areas such as electricity and transport, including costs and availability.
R800bn in unallocated taxes
Noting that the cancellation of the 0.5% value-added tax increase has created a shortfall in revenue, Beesley told Sunday World that it should not be expected to affect the social relief of distress grant.
He said this shortfall could be recovered by improving tax collection by the South African Revenue Service.
He highlighted that there is currently an outstanding R800-billion in uncollected taxes and noted that the increased funding should assist with resources to collect these funds.
Beesly also criticised the current broad-based black economic empowerment (BBBEE) policy, saying it had failed to achieve real transformation.
“As ActionSA, we believe economic transformation is an imperative and is non-negotiable. However, the current BBBEE policy is not working and should be replaced with a policy that empowers from the bottom up. As Action SA, we have proposed the Opportunity Fund, which will replace BBBEE,” said Beesley.
He said the proposed Opportunity Fund would replace BBBEE with a 3% tax on private sector profits, excluding SMMEs, for 30 years.
Infrastructure development
He explained that it reduces financial burdens on businesses but drives impactful economic transformation.
“The fund’s expenditures will be strategically allocated. 10% for education, investing in skills development and access to quality education, and 30% for entrepreneurial funding, supporting small businesses and start-ups — fostering innovation and job creation,” said Beesley.
He said 35% should be shared for infrastructure development, which includes building schools, clinics, public transport, housing, and other facilities that expand economic access.
Sustainable investments would get 25% for ensuring the fund remains a catalyst for lasting empowerment.
Beesley also added that South Africa’s manufacturing sector needed urgent support to recover.
He said township economies and small businesses should receive more funding to help tackle unemployment among young people.
“Government spending should be directed to supporting the manufacturing industry. The manufacturing sector should be an enabler of economic growth and job creation but is currently bleeding due to failed economic policies and the lack of support.
“There are numerous entrepreneurs who can play a massive role in getting the economy going and in job creation but are limited due to the inability to access capital,” he added.
Put corrupt officials in jail
Asked if he believed the government would choose long-term reform over short-term politics, Beesley expressed no confidence.
“Not confident at all. The reason being is that there is so much disunity in the GNU, and everything is about political parties and the egos of their leadership as opposed to long-term planning and putting the people of the country first,” said Beesley.
He said Finance Minister Enoch Godongwana should shut down their egos and consider what is best for South Africans, especially the unemployed people.
“The only way we are going to move our country forward is if corrupt officials are put in orange overalls [go to jail].
“In this regard, the NPA is seriously underfunded, and if we are going to take corruption seriously, the NPA [National Prosecuting Authority] must receive significantly more funding,” said Beesley.
