A top priority should be to skill our youth
FINANCE Minister Tito Mboweni’s budget speech yesterday confirmed South Africa’s weakened economy continues to stifle job creation.
The economy must grow to increase the number of jobs and further spikes in the unemployment figures will only lead to increased taxes.
Mboweni acknowledged that the country had the most diversified economy on the continent and a young population, but youth unemployment was staggeringly high.
Saving from the public sector wage bill will be channelled to SOEs, but surely some of this needs to go to the youth wage subsidy which is being used to skill unemployed youth and channel them into jobs?
He stressed the need for an efficient and capable state with the assistance of the private sector, but also announced further bailouts for Eskom and SAA.
Fixing SOEs will go a long way to dealing with the country’s mushrooming debt, with Eskom’s debt alone standing at R450 billion.
It will also restore the confidence of the public in government reforms. SAA, too, is floundering and is under business rescue.
“It is the very sincere hope of many that this intervention will lead to a sustainable airline that is not a burden to the fiscus,” Mboweni said.
With South Africans facing gloomy economic conditions, more will have to be done to ensure the burden to the fiscus across all sectors of government is addressed.