Discussion | Finance Ministers mini budget speech

South African debt is expected to increase to over R365 billion by 2024, according to Finance Minister Enoch Godongwana, who delivered his mid-Term Budget Speech in Parliament earlier. eNCA speaks to Patience Mbava, the chairperson of the Financial and Fiscal Commission for more. Courtesy #DStv403

Some reaction to patients baba she’s of course the chairperson of the financial and fiscal commission patients good afternoon just first up your overriding reaction how do you characterize this budget uh thank you so much dan uh the budget uh from our perspective uh it’s a it’s a balancing act uh the key word is trade-off so government faces a trade-off between

Uh growing the economy sustainable as well as addressing social economic issues so you could see that clearly there has to be a balance between meeting the needs of an agitated uh civil society because as the minister was speaking uh there were people outside parliament uh who are actually agitating for more uh social grants and also the minister is talking

About a sustainable growth path how do we manage debt but at the same time we can see that this minister is quite uh intent on in ensuring that the state intervenes uh in the economy and preserve socio-economic rights so as the ffc uh what we see is that there are moves to us and towards um getting to a point where there is a permanent um basic income grant

Hold on hold on hold on ma’am on that point i mean he was very clear that government still has to discuss and decide a a number of things especially about the special distress grant that they’ve brought in julian covet 19 the 350 render month one and then the activists of course were outside parliament wanting it to be extended and he said government still has

See also  How do I buy out a partner using financing?

Not decided what’s going to happen beyond march 22 but we will be discussing it there is pressure of course and calls that make sense for a basic income grant but he was at pains to point out that the monies that they are getting are not really sustainable in the long term like this temporary windfall from the mining industry of an extra 120 billion rand into

The fiscal that’s not gonna be for long term exactly so we need to be very prudent in how we move forward because that money is not long term it’s a short-term windfall due to the upturn in the commodity sector so we need to find ways where we can grow the economy so what we could see is that there are moves as well to unlock the blockages that are currently in

The economy in terms of ensuring that your um your escom uh works the logistics infrastructure works so that the economy can be unblocked to actually grow beyond a growth path so we have to look internally first to see how we can move these blockages that block the economy from reaching its sustainable growth path yeah and a lot of money has been spent already on

Escom and escomb still wants more but it wasn’t very clear from the minister he what he’s expecting but he was saying that by in february they’ll be they’ll be clearing some clarifying more but he did make the point that gone are the days of bailing out state-owned enterprises and that is that is uh the the key issue um how do we go ahead and move forward with

See also  National Financial Literacy Education

Continuous bailouts as the ffc we have we have tried to um analyze the the state-owned enterprises but we have always come against uh a war because many of these state-owned entities are not transparent in terms of their financials so uh we have uh called for uh the relevant uh executive authorities to help us to analyze and to act to assist uh to advise government

On how the state owned enterprises can be more sustainable but we need the numbers we need the figures and we have come across uh at many times uh at language yeah that’s a pity the the you mentioned the word balancing act earlier i spoke to an economist elias fiso scanzana and i said to him if we had to hashtag this balance this budget what would it be he said

Hashtag balanced budget now you’ve got an extra 120 billion rent the gg uh dondo muhajan telling my colleague dev and murugan that 60 billion is going towards servicing the debt currently the debt levels are very high as we all know that the state is servicing then there’s going to be a discussion about the arrest the other 60 billion where do you prioritize where

Should it go what would the commission expect uh it is as you say it is a balancing act but i think uh at the at the list uh the social economic rights of our people as per the constitution should not regress so we have seen in the previous budget that issues like education like your social grants um for the poor for instance uh the old age pension uh before

See also  How to get a Finance Internship

They did get an increase of about 250 rent and then that was withdrawn so uh what you’re saying is that the social economic rights should not be unduly negatively impacted by a reduction in the budget so we’re watching out for that that those rights are protected in the constitution the basic social economic rights of our people yeah so you have to make sure that

You don’t compromise on that so while you are balancing you have to make sure the money goes to the right sectors just a final question i mean there’s an issue of the july riots let’s not forget them the minister did refer to them how badly they’ve affected investor confidence in their country and redirected resources in terms of the damage that that we have seen

Would you expect there should be more given in terms of relief particularly to to small business just beyond the sales react claims i think uh most uh job creation that is happening right now is created by micro uh enterprises and so those are not uh in the normal course of business regarded as uh mainstream businesses but they are the ones who are creating

Most jobs so they should have access to some sort of funding to ensure that they are also sustainable and they continue to create those jobs so i do think that the july riots where a writing on the world that all is not well in our country in terms of inequality unemployment and poverty thank you very much for your time this hour here patient zimbabwe from the

Financial and fiscal commission’s

Transcribed from video
Discussion | Finance Minister's mini budget speech By eNCA