Budget Speech 2023: Eskom bailouts can not continue

ActionSA says while it welcomes the commitment of Finance Minister Enoch Godongwana during his Budget Speech on Wednesday, 22 February 2023, the continued bailouts of Eskom can no longer continue.

ACTIONSSA SAYS ESKOM BAILOUTS MUST STOP

Godongwana, during his Budget Speech, introduced tax credits for private solar panel installation and took over R254 billion debt from Eskom to stabilise operations at the utility.

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“The continued bailouts of Eskom can also not continue, and therefore long-term solutions to the utility need to be found, such as the long-awaited establishment of an independent transmission company and the increased participation of private companies and private-public partnerships,” says ActionSa’s Atholl Trollip.

He says it remains a concern that fundamental reforms to ignite long-term economic growth remain missing.

BUDGET SPEECH ANNOUNCES ESKOM R254 BILLION BAILOUT

ActionSA says announcements in the Budget Speech around Eskom, private solar panel installation, and fuel tax relief for food producers should assist the country in dealing with the ongoing electricity disaster created by the ANC.

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TAX RELIEF FOR PRIVATE INDIVIDUALS REMAINS TOO LOW

“Tax relief for private individuals remains too low to make mass solar installation affordable for most South Africans,” says Trollip.

“Outgoing Eskom CEO Andre De Ruyter’s recent comments that the $8.5 billion Just Energy Transition money will likely be stolen by the ANC further confirms suspicions that additional money towards public entities will solve nothing unless corruption is tackled head-on, especially in the governing party, in government and the in state-owned enterprises.”

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“ActionSA reiterates our belief that the tough choices faced by Minister Godongwana during his Budget Speech were self-inflicted by the ANC due to years of mismanagement and corruption and hollowing out of state institutions such as Transnet, Eskom and the National Prosecuting Authority (NPA),” said Trollip.

Trollip says the ANC has consistently shown it is too preoccupied with internal power struggles than making crucial decisions.

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“Only the South African electorate and taxpayers can decide whether they will tolerate any more budgets tabled by the ANC.

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