Opposition urges Pravin to stick with prudent policies
POLITICAL parties have called on Finance Minister Pravin Gordhan to remain resolute in the face of extreme political pressure and criminal charges.
Gordhan will present his mediumterm budget policy statement (MTBPS) today at a time when rating agencies are expected to come to South Africa early next month to conduct another review before announcing their results in December.
African Christian Democratic Party MP Steve Swart called on Gordhan to stick to his prudent fiscal consolidation path.
“He must remain resolute in the face of intense political pressure and intimidation from those involved in state capture, and who are trying to gain access to the National Treasury to enrich themselves. This will be to the benefit of the country and may avoid the looming sovereign debt downgrade by ratings agencies,” he said.
Swart said it was key to keep the budget deficit as close as possible to the February forecast of 3.2 percent of GDP. The international benchmark is 3 percent of GDP.
As matters now stand, debt service costs are the fastest-growing budgetary expenditure item and will reach R147.7bn in 2016/17, with net government debt set to reach a staggering R2.23 trillion in 2016/17, he added.
“Unaffordable budget items, such as the nuclear build programme, need to be shelved until the economy has recovered. Corruption and wasteful expenditure, estimated to be in excess of R30 billion per year, must also be addressed,” Swart said.
The spiralling public sector wage bill, which makes up 34 percent of current government expenditure, must also be kept in check, he added.
DA leader Mmusi Maimane has called for Gordhan to break ranks with the ruling party and announce new job policies.
“I extend a challenge to the minister: Don’t make this a ‘business as usual’ rehash of the same old decisions that have led us to this place. I challenge him to be bold, and forge a new path on policy positions and initiative – specifically around growth and job creation,” he said.