Budget gripe

One of the most common “over a beer” conversations about the budget was that the government certainly isn’t “for the people”.

It has been accused of its lack of populism because, it was being said, all the relief we were enjoying from reductions in food prices and petrol/diesel prices and the like had been grabbed back – and more - in a 1% tax increase for most of the middle class.

Even more was added to the petrol price issue, with SA’s pump price tax jumping from a modest 28% to 41% by a hefty 80.5c a litre increase – 30.5c a litre in the “general fuel levy” and a further 50c a litre to shore up the Road Accident Fund which is almost R100 billion in the hock. This gave the government a share up from R3.30 to R4.13 per litre, and netted them a staggering R17bn extra.

What most of us were saving on groceries and the like has been more than eaten up by an extra levy on electricity – up from 3.5c/kWh to 5.5c/kWh. Designed, said the budget, “to assist in demand management” or more simply to cut demand.

This at the same time as it proudly suggested that it was going to link up another 4 million people to the electricity grid.

And, as everybody in that bar complained about the budget, they ordered another soothing draught of ale, which was costing them another 7c per 340ml can. And those reaching for a fag to quieten their nerves were paying an extra 4.1c for it.