Rumours fail to derail Gordhan

FINANCE minister Pravin Gordhan yesterday remained resolutely upbeat despite the predictions of his imminent political demise.

Gordhan addressed the parliamentary press corps shortly before his budget speech yesterday.

Although he seemed chipper, his deputy Mcebisi Jonas and treasury directorLungisa Fuzile looked decidedly glum at the press conference.

Rumours have abounded over the past few weeks that Gordhan would be replaced by Brian Molefe, the former Eskom chief who left the power utility in streams of tears after his frequent visits to the Gupta-associated suburb of Saxonwold were revealed.

Gordhan’s budget of R1.56-trillion projects a shortfall of R149-billion (3,1% of GDP), which the country would have to borrow.

A new tax bracket for the super-rich has also been created. Those with taxable income of R1.5-million a year will in future cough up 45% of their income to the state.

Gordhan said although global economic growth is slightly better than the preceding year at 3.4%, geo-political and economic uncertainties have increased.

South African growth is estimated to reach only 1.3% this year, which the finance minister admitted provides a major challenge to government and citizens.

Gordhan signaled government’s intent on land reform by earmarking R30billion for it between now and 2019.

He said South Africa needed to prioritise its spending better, and had to build the widest possible partnership to promote consensus and action on a programme for inclusive growth and transformation. — TMG