By Lehlohonolo Lehana.
The African National Congress(ANC) Secretary General Fikile Mbalula says the future of South Africa is dependent on the government’s ability to make decisive and prudent choices to address the country’s fiscal challenges.
Mbalula briefed members of the media in Cape Town on Wednesday on the ANC’s expectations ahead of the Medium-Term Budget Policy Statement.
The tabling of the budget comes amid growing concern over government expenditure and fears that the country could be heading for a debt crisis.
Mbalula said the government should cushion the less fortunate from the increased cost of living.
“The African National Congress advocates for a sensible reduction in government spending and reallocating resources towards growth-oriented reforms that promote inclusive economic expansion and progress,” he said.
Mbalula said the time has come for the government to urgently start working with the private sector to improve the state of the economy.
“The most important state-owned asset at our disposal is Transnet, and we know that it is affecting the potential of the economy to grow. We are unable to move goods with the necessary speed from the mines to the harbour at the speed we want”.
“The private sector has long said they are ready, so we are saying, what are we waiting for? Let us move with speed and work with all the partners to unlock this potential, which will then see the growth potential of our economy and the employment of our people. I think that is what is important for us in terms of the Mid-Term Budget”.
Mbalula said the ANC expects the MTBPS statement “to be balanced”.
“When you govern, you face a number of challenges, and one of the challenges we face in terms of our fiscal situation is that there has been a steady implementation of reforms which must be expedited in order to unlock economic growth. There has also been a steady resolve of the social compact between business and labour, and now that at a sector level, partners have found each other, we have seen positive spin-off in terms of the economy”.
“As the economy expands, it’s facing new challenges, and we believe that the MTBPS statement will address reprioritisation as opposed to austerity measures in order to mitigate the collapse of the fiscus in relation to our ability to deliver for our people.”
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Video Courtesy of MYANC.