In a stark pre-budget assessment, the Democratic Alliance’s (DA) Finance spokesperson, Mark Burke, has argued that excessive government bureaucracy is actively stalling South Africa’s progress and that the state must “get out of the way” of the private sector to reignite economic growth.
The comments were made during a discussion ahead of the Medium-Term Budget Policy Statement (MTBPS), where Burke outlined what he described as the four critical focus areas a DA-led finance ministry would implement.
The first pillar, Burke stated, would be a firm commitment to “no new government expenditure” in the current budget cycle. He argued that there is “absolutely no avenue” to fund new spending, as South Africans are already over-taxed and the nation cannot afford to increase its debt levels, with debt service costs already at R22 out of every R100.
Secondly, Burke emphasized the need for greater efficiency within existing expenditures. He proposed the embedding of a “culture of spending reviews” within every government department to systematically identify and eliminate inefficiencies each budget cycle.
“This would include a range of things, but we’re talking about the looting. We’re talking about the ghost workers, but we’re also talking about departments that have just gotten used to glut over time,” Burke said. He framed this as a practical measure to rebuild public trust in how government manages money.
The third point was a direct pledge against any new tax increases, whether on income, corporate profits, or value-added tax.
The final and central theme of Burke’s argument was the “acceleration of the reforms needed to get the economy going again.” He contended that the only sustainable way to increase revenue for critical social services is to grow the economy, which is being hampered by state inefficiency.
“The sprawling bureaucracy that is our state at the moment… actually gets in the way of people wanting to do things,” Burke asserted. He pointed to licensing departments as an example, where compliance is mistakenly seen as a job creator rather than a hurdle. “South Africans are extremely resilient and are innovative. They just get stuff done. We need to get out of their way.”
When challenged on whether reducing state involvement could lead to essential services becoming privatized and unaffordable, Burke clarified that the DA is not proposing wholesale privatization. He stated that critical services like education, healthcare, and policing must remain and even see reinforced investment.
“The DA is not saying those things need to be taken away. The DA is saying those things need to be made better,” he explained. “And then where the state is getting in the way of the private sector… if the state can just get out of the way, things might just run a bit better.”
Tax Expert Highlights Compliance Gains and Consumer Strain
Following Burke’s comments, tax expert Zohra de Villiers, a Partner for Global Mobility and Employment Tax Advisory at KPMG, provided analysis on the country’s fiscal position.
de Villiers noted positive trends in tax collection, citing R47 billion collected by SARS in long-outstanding taxes in the first half of the financial year, nearly half of which was Value-Added Tax (VAT). She attributed this success to a focus on compliance and technology.
However, she highlighted the strain on consumers, noting that for three consecutive years, there have been no inflation-adjusted changes to personal income tax brackets, which she said puts taxpayers “in a worse position.”
Echoing the need for fiscal responsibility, de Villiers stated, “There’s just no appetite for any increase in tax rates.” She expressed hope that the Minister would signal future relief for households, potentially through bracket adjustments.
On the issue of governance, de Villiers reinforced that taxpayers need to see their money spent effectively. “Corruption must be lowered. We must look at fruitless and wasteful expenditure… once we get that right there’ll be more money to spend in those areas that really need it,” she concluded.
