‘Need to ramp up growth’

PARTIES in the National Assembly have called for a Budget that will ramp up growth and have tangible outcomes.

The Budget speech by Finance Minister Pravin Gordhan today comes without the anticipated swearing in of Brian Molefe as an MP yesterday.

House chairwoman Thoko Didiza announced the swearing in of two ANC MPs, but not Molefe.

ANC chief whip Jackson Mthembu later confirmed that Molefe had not yet been sworn in.

“Parliament will tell you when. When he is sworn in the presiding officers will tell the House,” he said.

Regarding the Budget Speech today, Mthembu said they would wait for Gordhan to tell the nation how he had allocated funding.

ACDP leader Rev Kenneth Meshoe said the infighting in the ANC had to stop, and Gordhan needed to be left alone to do his job.

He said the minister had done a sterling job in his time at the Treasury, but they were concerned about the slow growth in the economy.

UDM leader Bantu Holomisa said the three-year Budget cycle was not working for South Africa, and must be scrapped.

“Let’s go back to the old system of budgeting for the year,” he said.

The South African Chamber of Commerce and Industry (Sacci) said yesterday it hoped Gordhan would not increase corporate and personal income tax.

Sacci said it would like to see how “radical economic transformation” would be interpreted in the Budget.

The chamber said it believed that increasing corporate and personal income tax would be regressive as this could only serve to increase costs and discourage expansion through capital investment in productive capacity.

AMID weak economic growth and political infighting, under-fire Finance Minister Pravin Gordhan today delivers what could probably be his toughest Budget speech yet.

Gordhan, under siege from forces within the government, the ruling ANC and other interested parties, might announce a raft of tax measures to plug the tax shortfall in the 2017/18 fiscal year.

He has a tough balancing act to do to please investors, ratings agencies, colleagues in the government and in the ANC, while also making sure his budget is pro-poor and that the tax hikes do not add more pressure to already squeezed taxpayers.

Gordhan first indicated the government’s intention to raise the R43 billion in his MediumTerm Budget Policy Statement in October last year. At the time, he was under attack from within and outside the government and faced criminal charges for his alleged role in the so-called South African Revenue Service Rogue Unit. The charges were withdrawn, but split the government and the ANC.

Today, all eyes will be on the embattled minister when he presents his Budget in the face of growing speculation about his future at the Treasury, with growing calls from a lobby linked to the wealthy and politically influential Gupta family for him to be axed.

Speculation is rife that he will be replaced by former Eskom chief Brian Molefe, who is expected to be sworn in today as an ANC MP, paving the way for his elevation to Treasury.

The calls for radical economic transformation are justified in the face of inequality and when, 23 years into democracy, most of our people are relegated to the margins of the economy. But transformation must not remain rhetoric and thrown around to score political points.

And although Gordhan seems unfazed by the political manoeuvring, the Budget offers him the best opportunity to silence the noise by presenting a road map for the country as it battles rampant unemployment, the rising cost of living, poverty and inequality, among many other ills.

Also key would be to clearly outline plans for higher education after last year’s nationwide violent protests by tertiary students who demanded free education, particularly for the missing middle.

In this poisoned political climate, we must resist the temptation to go with the noise and look closely at what Gordhan plans to do to steer our economy out of the stormy seas and get South Africa working.

We are sure he knows that he can’t please everybody, but in this Budget he must set the tone for what the government will do in the next financial year to curb expenditure and tighten fiscal policy while stimulating economic growth. The Budget must be about the people.