SA has reached its fiscal limits and unless growth recovers, the government is going to strain to fund those policies it already has, let alone introduce new ones.This was the sober message finance minister Pravin Gordhan delivered in Parliament on Wednesday in presenting SA’s 20th medium-term budget policy statement.A heavy cold wasn’t the only burden the finance minister shouldered. Next week he will appear in court on fraud charges and his speech, though tough fiscally, contained little in the way of growth-enhancing reforms on which to pin a sustainable economic recovery.Although the “green shoots” of a cyclical upturn are visible, the treasury has had to revise down its GDP growth forecasts for the fifth year in a row.It is now expecting growth of 0.5% this year, rising to 1.3% in 2017 and 2.0% in 2018 compared to 0.9%, 1.7% and 2.4% previously.The economy’s failure to grow means revenue is set to fall short of budgeted targets by a massive R23bn in the current fiscal year. And...
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.