Budget 2017: a confidence game at a delicate time
The finance minister has delivered a budget that inspires confidence — but the president and the government will make or break it
This is a delicate time for the South African economy. There are some green shoots, with growth expected to inch up above the one percent mark this year, signs of recovery in some commodity markets and a re-evaluation, in global markets, of the investment case for emerging markets. But even this modest recovery is not guaranteed. Confidence that the economy will perform well remains low. Political contestation is fierce, both within and between political parties, which is fine, except it comes with the constant threat of skewing economic policy making towards the rash and expedient. The role and position of the National Treasury itself is under attack. Against this maelstrom, a national budget had to be prepared and delivered. The most important function that the 2017 budget delivered by Finance Minister Pravin Gordhan can serve is to restore confidence in the government’s stewardship of the economy. This in turn might restore the confidence that is required for businesses and consu...
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