Despite difficulties’

FINANCE minister Pravin Gordhan yesterday delivered a budget of R1,56-trillion projecting a shortfall of R149billion (3,1% of GDP), which the country will have to borrow.

However, he remained resolutely upbeat despite the predictions of his imminent political demise.

Although he seemed quite chippier, his deputy Mcebisi Jonas and treasury director general Lungisa 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.

Gordhan introduced a new tax bracket for the super-rich.

Those with taxable income of R1,5-million per year will in future cough up 45% of their income to the state.

Gordhan said although global economic growth was slightly better than the preceding year – at 3,4% – geopolitical and economic uncertainties have increased.

South African growth is estimated to reach only 1,3% this year, which provides a major challenge to government and citizens.

“We need to radically transform our economy so that we can have a more diversified economy, with more jobs and inclusivity in ownership and participation,” said Gordhan.

He earmarked R30-billion for government’s intent on land reform.

“Our financial situation is difficult, but we still produced a credible budget.”

He said South Africa needed to better prioritise spending, and promote consensus and action on a programme for inclusive growth and transformation.