Budget 2017
ANALYSING THE SPEECH: Balancing political principle with economic reality
SA should be obsessed with finding a cure for inequality, according to Pravin Gordhan. But in its quest for a more inclusive economic model, recklessly ignoring the ‘stark’ situation faced by the country can only end in tears
The persistent refrain in finance minister Pravin Gordhan’s budget speech was inclusive growth, harking back to President Jacob Zuma’s call for radical transformation of the economy during his state of the nation address.But while Zuma’s message could be dismissed as placatory populism, Gordhan’s musings are harder to discount. At the prebudget briefing with journalists, he suggested economic inclusivity should become a national obsession.Of course, the reality is that radical transformation is overshadowed by stark fiscal fundamentals. It might not be politically convenient at a time of growing populist sentiment, but the hell-bent pursuit of radical economic transformation against a backdrop of lacklustre economic growth could easily damage SA’s already fragile longer-term growth prospects.In his prebudget remarks, Gordhan insisted there is enough money in the system "to do what we want to achieve". But he added that "many processes are at play at the moment" and an "economic Code...
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