LOO says the budget speech is ‘recklessly ambitious
Leader of Opposition (LOO) in Parliament, Dumelang Saleshando, has dismissed the 2024/25 budget speech delivered by Minister of Finance Ndaba Gaolathe, calling it “recklessly ambitious” and deceptive.
When responding to the budget on Wednesday afternoon, Saleshando argued that while many of the UDC government’s promises were unrealistic, voters believed them and handed the ruling party a mandate to deliver.
Outlining key pledges made by the UDC before assuming office, Saleshando reminded Parliament of the ruling party’s commitments, which included: delivering an economy that grows at an average of 10% over five years.
He said UDC committed to increasing the old age pension to P1,800 by November 2024, reducing the pension age to 60 years, introducing a living wage of P4,000 per month, creating between 450,000 and 500,000 jobs within five years.
He said they promised to build 100,000 houses, increase student living allowances to P2,500, increase Ipelegeng stipends to P2,500, distribute free sanitary pads in schools, attract at least P100 billion annually in investments, converting Chema Chema loans into grants, and reduce water and electricity tariffs by 30%.
He said these promises were made despite full knowledge of the economic realities.
“Long before the release of the UDC manifesto, the performance of our economy, the poor performance of the diamond market, as well as the state of our Government Investment Account (GIA) were matters of public knowledge. Any claim by the government that the fiscal situation was unknown, or worse than expected, is disingenuous and suggests dishonesty of the highest order,” Saleshando said.
He challenged the government to come clean about which promises they intend to fulfill and which they have quietly abandoned.
“A budget speech that frequently refers to integrity is deafeningly silent on a large majority of these promises, including the foundational one on which all others rest- an economy that grows at an average annual rate of 10%.”
Saleshando said it was now evident that the UDC government had abandoned the 10% economic growth target, as the budget projects a 3.3% growth rate in 2025/26, far below the Vision 2036 target of 6%.
He said that given that GDP contracted by 3.1% in 2024/25, a 3.3% growth rate in 2025 is barely enough to recover to the 2023/24 GDP level.
“If the economy falls far short of the 10% target, the hopes and dreams of young people who believed that 450,000 to 500,000 jobs would be created are shattered. They deserve an apology,” he said.
He also questioned the silence of the budget on raising the minimum wage from P1,500 to P4,000, calling on the Minister of Finance to clarify whether the economy can sustain such a move and when it is expected to be implemented.
“We expected to hear tangible steps on how and when this will be realized,” he added.
Saleshando further criticized the lack of clarity on the promised stipends for Ipelegeng workers and tertiary students, the reduction of the pension age to 60 years, and the commitment to converting Chema Chema loans into grants.
He said one of the hallmarks of the previous government was making promises that were never intended to be achieved, and it appeared the UDC was following the same path.
However, he assured that where the BCP’s policies aligned with the UDC, they would offer support.
He welcomed reforms in public financial management systems, emphasizing the need for government planners to operate without political interference.
“Our systems, processes, and practices must allow competent managers to handle project cycles from identification to accountability, free from undue political interference,” he said.
