Gordhan skates on thin ice ahead of budget speech

A POLITICALLY “vulnerable” Pravin Gordhan will today deliver what could be his last budget speech, where he is expected to strike a balancing act while fending off attacks from some of his own colleagues.

Gordhan faces an uncertain future going into this year’s budget, which has been preceded by calls for his removal from some in the ANC.

Gordhan had delivered austerity budgets and announced several cost containments over the past few years, as South Africa grapples with a sluggish economy.

Tax increases are on the cards as the government looks to increase its revenue base. But Gordhan again finds himself in an awkward position, following the debacular Nhlanhla Nene/Des van Rooyen reshuffle scandal just before last year’s budget.

Rumours of his pending axing to make way for former Eskom CEO Brian Molefe also refuse to go away.

Gordhan’s budget also comes as he takes on the Gupta family’s Oakbay Investments in court.

Political analyst Ralph Mathekga said what Gordhan is facing is “unprecedented” for a finance minister.

“He’s vulnerable in two ways. The first is how credible is his budget. Is it the type of budget you think will form part of policy?

“But what you notice that has been happening is a lot of ministers have actually started challenging the budget, ministers saying disparaging things about the Treasury.

“This has never happened,” said Mathekga.

When ministers had a problem with the budget before they would normally raise it internally, he added.

“It is quite unprecedented to hear the likes of Lindiwe Zulu saying the allocation to her department is not good and is a stumbling block in dealing with job creation.

“Number two is a simple question of possible removal of Pravin,” said Mathekga.

He said Gordhan doesn’t seem to have “political protection” from the head of cabinet.

Economist Mike Schussler said “from the outside” it seems Gordhan “seems very vulnerable”.

“I think it’s a tremendous story, this. A person that’s asking South Africans to pay more taxes and to believe that things are going to get better, in a situation he may not be around in for much longer,” said Schussler.

The head of the parliament’s budget office, Professor Mohamed Jahed, said the budget would reflect Sona’s focus on radical socio-economic transformation, and priorities such as the nine-point plan, the national development plan, energy, security, investment, and social issues like the development of the youth and women. — TMG