Cabinet tries to talk down agency jitters on fiscal policy change
THE cabinet has moved to allay fears of a fiscal policy change ahead of upcoming visits to the country by various credit ratings agencies.
Communications Minister Ayanda Dlodlo said at a later media briefing that Finance Minister Malusi Gigaba had briefed the cabinet on his recent IMF/World Bank meetings in New York and last week’s World Economic Forum (WEF) on Africa meetings.
The cabinet had also been briefed on investor and ratings agency concerns.
“There was extensive discussion on the world and regional economic outlooks and what we need to do to reverse the [ratings] downgrades.”
She said ratings agencies representatives were expected to visit South Africa later this month and in June‚ with further visits scheduled for August and September.
“The minister tried his best, even at WEF, to allay the concerns and fears that there is new policy that might be introduced because there is a new minister,” Dlodlo said.
“ANC policy is what guides our policy framework and the ANC goes to conference every five years.
“None of us have the authority to change policy midstream‚ unless there are serious problems that affect our people in the implementation of that policy.
“Minister Gigaba has no intention of changing anything that was implemented by his predecessor in terms of policy.
“So we have tried our best during WEF and in the meetings that he has had‚ [to ensure] that those fears of policy changes are allayed.”
She said areas of focus in a bid to reverse a ratings downgrade would include prudent fiscal discipline‚ staying within the expenditure ceiling and ensuring there was no “conflicting behaviour or announcements” coming from the government.
Dlodlo also said the cabinet was concerned about violent protests that played out recently, including in Vuwani in Limpopo‚ Coligny in the North West, and Eldorado Park and Ennerdale in Gauteng.
She said it strongly condemned the violence and called on communities to seek solutions to the destruction of public property or infringement of the rights of others.
“Those who break the law will face the full might of the law‚” Dlodlo said.
She said that in Vuwani‚ President Jacob Zuma had met with King Toni Mphephu Ramabulana, of the Vha-Venda, and it had been agreed that the Vhembe district municipality should provide services to Vuwani while a lasting solution on the demarcation issue was being sought. – TMG Digital/TimesLIVE