EDITORIAL: A daunting job to balance budget
Although fiscal consolidation is now back on the agenda, the pre-budget indecisiveness has been replaced by a headlong rush for new numbers
At first glance, it looks a good thing that the Treasury has wrestled the government back onto the track of fiscal consolidation. It is certainly a positive development that yet another grab at power and resources by President Jacob Zuma, whose intention had been to announce free higher education ahead of the ANC national conference, has been neutralised by the pushback from society and from the market. That plan, although still in play, is on the back burner for now. Since the disaster of the medium-term budget policy statement a month ago, Finance Minister Malusi Gigaba and top Treasury officials have been in intense interaction with investors and ratings agencies. In attempting to stave off a double downgrade, Gigaba — with the consent of Zuma — promised to bring in a new deal in February that would involve slashing budgets and raising taxes. The plan became public knowledge on Monday in a statement issued by the Presidency, promising to restore fiscal sustainability and stabilis...
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.