Sarupen outlines DA’s policy priorities and SA’s spending problem

The DA’s emphasis on the need for economic growth and efficient government spending was clearly articulated by deputy finance minister Ashor Sarupen in a mini-plenary debate in the National Assembly. 

The debate focused on the urgent need for government to grow the economy, create jobs and spend more efficiently as an alternative to increasing taxes and deficits to achieve an SA that works for all its people.

It was proposed by DA finance spokesperson Mark Burke ahead of Wednesday’s tabling of the new 2025/26 budget by finance minister Enoch Godongwana. 

The DA has stressed the budget needs to promote economic growth, a refrain also taken up by opposition party MPs during the debate.

Sarupen said in his speech on Friday that SA did not have a revenue problem but a spending problem.

“Billions are wasted every year on corruption, bloated bureaucracies and inefficient programmes. Every government department must be held accountable for how it spends taxpayer money.

“Waste must be eliminated and this must be done systematically under a comprehensive spending review. We must crack down on corruption with real consequences, not just words,” he said. “A government that allows corruption to flourish cannot claim to be pro-poor.”

Sarupen said SA’s fiscal and economic strategy had for many years been to raise taxes, increase borrowing and expand government spending — measures that had not delivered rising living standards but rather a decline in GDP per capita. 

“The policy choices of the past have left us with a sluggish economy, rising debt, and a government that spends more but achieves less,” he noted. 

“Our current economic strategy is unsustainable. Government debt has ballooned to over 76% of GDP, with interest payments consuming over 20% of our budget. Every year, billions are lost to inefficiency, mismanagement and corruption. These are core problems that we need to fix across the state.” 

More borrowing meant less to spend on critical services like healthcare, education and infrastructure, he said.

The only sustainable path forward was economic growth which would generate revenue for government without the need to raise taxes. But to achieve this required clear, decisive action. 

Red tape

Sarupen called for a full-scale regulatory review of red tape across the state that made it harder for businesses to start, operate and expand.

Eskom needed to be fixed, businesses needed to have access to affordable finance and infrastructure that delivered economic returns should be prioritised.

“Rapid structural reform in our network industries is key to unlocking major growth, and this needs to be accelerated. Instead of funding failing state-owned enterprises, we should encourage public/private partnerships that leverage private sector expertise and efficiency.” 

Labour laws needed to be reformed to make it easier for businesses to employ people. 

Businesses, Sarupen said, were being strangled by red tape, unreliable infrastructure and high costs. 

“The choice before us is clear. We can continue down the path of increased borrowing and declining growth — a path that leads only to greater hardship. Or we can choose a different path. A path of economic growth, where businesses thrive, where government spends wisely and where jobs are created at scale.

“The GNU (government of national unity) rightly took the decision that its apex priority is economic growth and job creation and now we have to execute it and show what meaningful reform looks like.” 

ensorl@businesslive.co.za