The government seeks to expand the basket of essential food items which are exempt from VAT and review administered prices, including the fuel price formula, President Cyril Ramaphosa told a full sitting of parliament on Thursday.
This is as household disposable incomes have come under significant pressure over the past three years due to elevated inflation and interest rates.
“Asset poverty is one of the underlying causes of abject poverty, which exacerbates the high cost of living among our people,” Ramaphosa said while outlining the government of national unity’s (GNU’s) five-year plan to reduce poverty.
“The provision of title deeds for land and subsidised housing provide people with assets that they can use to improve their economic position. Income poverty is also one of the underlying causes of poverty.”
Lekgotla
Reducing poverty is one of the three priority areas identified by the 10-party GNU to spur inclusive growth which is aimed at helping SA come out of mounting social and economic challenges.
Other priorities identified by the GNU at the two-day cabinet lekgotla last weekend are tackling the high cost of living, and building a capable, ethical and developmental state.
Details of how the three priorities will feed into government departments will be outlined in the Medium-Term Development Plan, a “strategic plan that outlines clear goals and includes specific, measurable objectives and a roadmap for achieving them”, Ramaphosa said.
“Cabinet will be convening a further strategy session to consider the Medium-Term Development Plan, which will translate these priorities into a detailed plan and interventions that government will implement over the next five years ... these goals will be properly aligned with the budget, which will support the implementation of these objectives.”
People first
The opening of parliament sets the tone for the seventh administration.
He said political parties have set aside their differences and would ensure that short-term political gains did not override commitment to implementing government programmes.
“It is about putting the people of SA first and foremost,” Ramaphosa said.
He said that the government would continue to focus on inclusive growth, including broad-based BEE. Restoring the country’s municipalities was key to this strategy.
“We will massively increase the scale of investment in infrastructure through a more holistic and integrated approach, positioning Infrastructure SA as the central institution of co-ordination and planning,” he said.
“We are simplifying the regulations on public-private partnerships to enable greater investment in both social and economic infrastructure development.
“From our largest metros to our deepest rural areas, we have a clear intention to turn our country into a construction site, as roads, bridges, houses, schools, hospitals and clinics are built, as broadband fibre is laid and as new power lines are installed.”
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