End of road for SOE bailouts, Godongwana says in MTBPS
No new allocation made for ailing state-owned entities in medium-term budget policy statement
The Treasury has made no new allocations, either through direct fiscal allocations or state guarantees, to ailing state-owned entities (SOEs), reflecting finance minister Enoch Godongwana’s tough love approach to SOEs given the potential drag the entities have on growth.
The Treasury outlined this proposal on Wednesday in Godongwana’s medium-term budget policy statement (MTBPS). Priority will be given to continued restructuring of Eskom and to establishing a competitive energy market with adequate supply for a growing economy. Opening freight rail access to third parties will be accelerated to reduce inefficiency and costs, helping firms offer lower prices and boosting economic growth, the Treasury said in MTBPS documents...
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