The Select Committee on Appropriations has expressed concern over the notably low number of public submissions regarding the Division of Revenue Bill and the Appropriation Bill, just one week before scheduled public hearings.

Committee chairperson Tidimalo Legwase revealed on Wednesday that only two submissions have been received so far.

“It is a bit worrisome because the closing date will be on April 14, which is next week Monday,” Legwase said.

She made the comments at the conclusion of the committee’s meeting after it was briefed by the Parliamentary Budget Office (BPO) on the 2025 Division of Revenue Bill, 2025 Appropriation Bill, and 2025 Eskom Bill.

However, she said the meeting provided the MPs with an opportunity to interact and also raise issues.

“When we go for public hearings, it will be easier for members to be able to engage going forward before the finalisation of these bills,” Legwase added.

During his presentation, BPO director Dumisani Jantjies highlighted the importance of seeing the Budget within the context of priorities in the Medium-Term Development Plan (MTDP) and assessing the efficiencies of the bills.

“The 2025 Budget's fiscal framework sets the stage for the Division of Revenue Bill and Appropriations Bill, and it is important that the allocations in these bills effectively translate the Budget's priorities into action,” Jantjies said.

He also said Parliament should ensure that Budgets align with the seventh administration’s priorities.

Continuous reprioritisation, informed by reviews, was essential to address evolving socio-economic realities, he said.

“The Division of Revenue Bill and the Appropriations Bill should be assessed not only on the proportions allocated to each sphere and vote but also on its potential impact on service delivery, inequality reduction, and economic growth.”

Jantjies noted that the 2025 Division of Revenue Bill reflected an intention to shift a greater proportion of resources to provincial and local government.

“However, it is important to recognise that the proposed Budget adjustments may not fully address the deep-seated challenges of backlogs, constrained public services, and slow economic growth,” he said.

The BPO’s presentation observed that the Budget marked increases in some function groups since the 2024 Medium-Term Budget Policy Statement.

It said the scale of the proposed Budget adjustments for several function groups may be insufficient to address backlogs that have constrained the public sector, suppressed economic growth, and weakened the resilience of households.

“The National Treasury has committed to shielding vulnerable households from proposed VAT increases through above-inflation social grant adjustments, expanding the list of zero-rated food items, and not increasing the fuel levy.

“However, these measures alone may not sufficiently protect vulnerable households from the broader inflationary effects of a VAT increase.”

According to the PBO, an increased VAT will disproportionately burden middle and low-income earners.

mayibongwe.maqhina@inl.co.za