Economic growth essential to avoid more fiscal measures, warns Treasury
If no progress is made with the reform agenda reform of SOEs and the public-sector wage bill will be necessary
More fiscal measures may be required in next year’s budget, if no progress is made with economic reforms aimed at accelerating the growth rate, a senior Treasury official warned in parliament on Friday. Such measures would be necessary if no progress is made with the reform agenda and if the Treasury believes the fiscus is on an unsustainable path, acting deputy director-general of the budget office, Ian Stuart, said in a briefing to members of parliament’s two finance committees. He gave the Treasury’s response to submissions made during public hearings on the medium-term budget policy statement (MTBPS) tabled in parliament by finance minister Tito Mboweni last week. The theme of the policy statement was that SA is at a crossroads, which requires that difficult choices be made with regard to, for example, state-owned enterprises (SOEs), management of the public service wage bill, and the implementation of economic reforms to stimulate growth. “Key fiscal risks in the period ahead i...
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