Tax hikes won’t solve SA’s budget problem, growth strategy needed

Joining Bongani Bingwa on 702, CDE executive director Ann Bernstein discussed real solutions to South Africa’s budget crisis ahead of the 2025 Budget. Instead of relying on tax hikes, she argues for a smarter approach—reducing the proposed 5.5% public wage bill increase to 3.5% with a CPI-linked adjustment over two years, suggesting “we could save R100bn”.  This discussion follows the release of CDE’s latest short report, Dealing with the Budget Crisis: CDE Recommendations, which outlines urgent steps to improve fiscal discipline and economic growth.

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