BUDGET SPEECH
HILARY JOFFE: Mode of economic transformation highlights notion of inclusive growth
Finance Minister Pravin Gordhan calls for conversation about how to tackle unacceptable inequality levels, wirtes Hilary Joffe
It’s been an interesting 14 or 15 months since December 13 for me and for the Treasury team," Finance Minister Pravin Gordhan said at the start of his prebudget media briefing on Wednesday. That was the date on which he was reappointed to the post after the 9/12 Nenegate debacle, and Gordhan wanted to highlight how far SA had come since those dark days when the rand had crashed, bond yields spiked and a ratings downgrade loomed.In February 2016 the Treasury team had to revise economic growth and revenue forecasts down in the context of the damage done by the December 2015 debacle as well as the gyrating oil price and new spending demands of the #FeesMustFall protests. Gordhan had to cut the spending ceiling and raise more taxes to ensure the budget stayed on the path of fiscal consolidation that government had promised, and also to reassure jittery ratings agencies. In October growth looked even worse, with a revenue shortfall of R23bn for 2016-17 and he had to cut more from the fol...
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