Kodwa claps, but everyone else sees the writing on the wall after Gigaba’s budget
Economists say another round of rating downgrades is inevitable, while opposition MPs say the minister had his political survival in mind
While ANC spokesman Zizi Kodwa applauded Finance Minister Malusi Gigaba’s "frank" account of SA’s finances, economists and opposition parties were less enthusiastic, with some saying a ratings downgrade is now inevitable. Gigaba delivered his first medium-term budget policy statement in Parliament on Wednesday following a walkout by the EFF, and in the midst of the rand’s crash to a 10-month low. Gigaba’s speech skirted around many uncomfortable aspects of the country’s fiscal risks but he did talk tough on the management of state-owned enterprises that use government guarantees. But Kodwa said Gigaba’s frank account should be appreciated as a bold step in mending the economy and state-owned entities. "What is important is his boldness and willingness to appreciate the difficulties in a very frank way without giving false expectations to the nation," said Kodwa. "The boldness of leadership to stabilise the SOEs is also important … SOEs are the bedrock of our developmental state." Ko...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.