‘Even tougher times ahead’

Finance Minister Malusi Gigaba conceded yesterday the country was facing tougher times ahead.

Briefing parliament’s standing committees on finance and appropriations following his medium-term budget policy statement, Gigaba reiterated his message that the country needed a new growth path.

“Times are tough, but we have to be tougher than them,” Gigaba said. “We have to take ourselves out of the current situation. If things do not change we will find debt escalating, deficit escalating, and we will find ourselves unable to instil confidence that we are able to manage our finances.”

South Africa revised down its economic growth projections from 1.3% as tabled at the time of the budget to 0.7% for 2017, only reaching 1.9% in 2020.

National Treasury projected a revenue shortfall of R50.8 billion this financial year.

Gigaba said additional spending commitments may emerge, including fee-free higher education, National Health Insurance, defence review, early childhood development, land reform, and large infrastructure developments.

But he said some of the most worrying government expenditure included the increasing wage bill and the hole dug by failing state-owned companies.

Democratic Alliance spokesperson for finance David Maynier said Gigaba was deferring the most important aspects of the budget to an unknown future date, hoping President Jacob Zuma would not be president after his party’s elective congress in December. – ANA