On Now
Weekdays 00:00 - 05:00
Early Mornings Oscar
NEXT: 05:00 - 06:00 The Agri Hour with Gerben
Listen Live Streams

National

Gordhan to play it safe in mini budget

───   11:09 Sun, 23 Oct 2016

Gordhan to play it safe in mini budget  | News Article
Finance Minister Pravin Gordhan (Gallo)

Cape Town - Finance Minister Pravin Gordhan’s presentation to Parliament of the medium-term budget policy statement on Wednesday is likely to be more notable for its lack of action on key constraints facing the economy than the bold reforms required.


Bold reforms are required to avert possible downgrades by the rating agencies. 

City Press reports that with the threat of arrest and fraud charges hanging over him, Gordhan may be hesitant to deliver the structural reforms required to reignite South Africa’s growth, or to tackle the growing debt burden of state-owned enterprises. 

Instead, in seeking to convince the rating agencies that he remains steadfast on prudent fiscal management, the minister is likely to present a framework big on fiscal consolidation and spending reductions. 

According to Investec Asset Management, the budget deficit is still likely to slip beyond the targeted 3.2% of GDP to 3.4%.

Gordhan is also likely to revise his growth forecast from the 0.9% he expected in February, after the economy performed worse than expected.

-news24.com



@ 2024 OFM - All rights reserved Disclaimer | Privacy Policy | We Use Cookies - OFM is a division of Central Media Group (PTY) LTD.