Air of cynicism over embattled finance minister

Not even the credibility of President Cyril Ramaphosa could sweep away the cloud of cynicism hanging over the National Assembly on Wednesday as Finance Minister Malusi Gigaba delivered his first budget speech while facing an uncertain political future.

The EFF was not in the house after its request to Ramaphosa on his rise to the highest office in SA: fire Gigaba as the finance minister.

A bespectacled Ramaphosa, sitting near Gigaba and sifting through documents, listened attentively to the minister.

The president appeared far more engaged in contrast to his immobility and stoical body language as deputy president when he heard Gigaba deliver the medium-term budget policy statement in October.

The only heckling that Gigaba had to put up with came in the form of sporadic jibes from DA MPs. The ANC members played the role of an adoring audience to the embattled minister.

To every optimistic projection of economic growth from Gigaba, DA MPs loudly sighed, “Oh please!” But ANC MPs gave Gigaba enthusiastic rounds of applause whenever he paused in his speech.

Gigaba said the government had increased personal income tax significantly in recent years, particularly in higher-income bands and corporate tax was high by international standards.

“We have not adjusted VAT since 1993 and it is low compared to some of our peers. We therefore decided that increasing VAT was unavoidable if we are to maintain the integrity of our public finances.

“The current zero rating of basic food items such as maize meal, brown bread, dried beans and rice will limit the impact on the poorest households,” Gigaba said.

Zweli Mkhize, member of the ANC national executive committee, told Business Day that the budget speech was “brilliant” in its decisive stance on securing the fiscal ship and protecting the poorest households from the brunt of economic suffering.

“I think the minister did a brilliant job. It was a difficult spot to be in. He has done his best to pull together a credible budget speech. The positive prospect of GDP rising is helpful and he has tried to protect the poor and stimulate the economy through boosting small business. Other proposals are good and helpful,” Mkhize said.

The clarity provided on the question of free education was welcomed, he said. Reassurance on the issues of education and social grants was much needed as SA entered the new financial year, Mkhize said.

EFF spokesman Mbuyiseni Ndlozi told Business Day that the finding by the High Court in Pretoria that Gigaba had lied under oath in the Denel-Fireblade case only reaffirmed that the party was right to stay away from the budget speech.

“Of course, we were right. This man is a liar.

“The most dangerous thing is he has done all he has done and we are still of the view that he must be removed.

“We are absolutely shown to be correct by the judgment,” Ndlozi said.