Faizel Patel, Radio Islam News – 25-10-2017
Finance Minister Malusi Gigaba has warned South Africans of tough economic times, announcing a tax revenue shortfall of R 50.8 billion which has eroded the country’s financial position.
Gigaba delivered his first major speech in Parliament on Wednesday since taking over from former finance minister Pravin Gordhan nearly seven months ago.
Gigaba says his medium term budget review gives an “honest view” of the situation the country is in.
He announced that government has slashed its economic growth projections to below 1%.
The figure for 2017 has been revised downwards from 1.3% to 0.7%.
“We have had to revise economic growth projections downwards for 2017. Growth is subsequently expected to increase slowly, reaching 1.9% in 2020. This trend assumes that the status quo prevails. We have the power to change our course. The global environment may be helpful as growth is improving”
Gigaba also announced that government would be selling its Telkom shares saying the decision was taken in a bid to avoid an expenditure breach as a result of the financial woes at South African Airways (SAA) and the South African Post Office (SAPO).
“We do not take this decision lightly, but we have had to in order to maintain the credibility of the expenditure ceiling.”
Gigaba also said the Finance Ministry is concerned about the challenges facing Eskom, as they expose the government to great risk
Earlier, the Economic Freedom Fighters (EFF) disrupted the National Assembly again, saying Gigaba should not be allowed to deliver his medium-term budget speech.
The party’s Floyd Shivambu told the house Gigaba is a Gupta puppet.
“South Africa is in crisis because of Mr Gigaba, who handed over state-owned companies to the Guptas. And we are collaborating in crime if we allow him to address this Parliament about money.”
The EFF than walked out of the house.
0 Comments