FISCAL CONSOLIDATION
Gordhan focuses on steering SA through two more years of Zuma
When economists and finance people talk about the medium term, they usually have a three-to five-year time frame in mind. But yesterday’s medium-term budget was, in crucial ways, about getting through the next two years in the hope of creating both the fiscal and the political space for better times ahead. That at least is the way Finance Minister Pravin Gordhan is looking at it, in an environment in which the Treasury has had to cut its growth forecasts for the next three years, with revenue now expected to undershoot his February forecasts by a cumulative R111bn over the period, spending pressure rising, and ratings agencies and investors watching closely to see if the government can stick to its deficit and debt targets and avoid a ratings downgrade that could pitch SA into recession. Briefing journalists ahead of his budget speech on Wednesday, Gordhan began by urging journalists to leave questions about his impending court case until next week and to focus instead on the budget...
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