NEWS ANALYSIS: Has Zuma opened the Treasury taps?
Linda Ensor looks at who might be celebrating the removal of Pravin Gordhan and Mcebisi Jonas, guardians of SA’s coffers
The biggest concern over the Cabinet reshuffle announced by President Jacob Zuma is whether the floodgates have now been opened for profligate state spending — whether it be by state-owned enterprises, on the controversial nuclear programme or the public sector wage bill. The key question regarding Malusi Gigaba’s move from home affairs to finance minister, to replace Pravin Gordhan, will be whether he will continue the policy of fiscal consolidation, debt reduction and belt-tightening entrenched under Gordhan. To do so would require the commitment from his fellow Cabinet colleagues — but the new appointments in key positions such as energy and public service and administration are cause for worry. Incoming minister of public service and administration Faith Muthambi will have to hold a tight rein over the public sector wage bill if the government’s fiscal consolidation programme is to stay on track, but she did not cover herself in glory with her oversight of the SABC, which descen...
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