South Africa’s ruling African National Congress (ANC) on Wednesday, welcomed the medium-term budget policy statement tabled by Finance Minister Malusi Gigaba, saying it would closely monitor the implementation of measures contained in the policy document.
“The low economic growth means that there will be a R50.8 billion shortfall in tax revenue, and we note that borrowing will shoot up, with nearly 15 percent of the budget being spent on servicing debt by 2020/21.
“This means that more than ever we have to focus on the quality and efficiency of spending, and more decisively and quickly root out wastage and corruption,” the ANC chief whip’s office said in a statement.
The statement supported the minister’s “commitment” to ensuring state-owned companies, which were placing major constraints on the fiscus, operate more effectively and were financially sustainable.
“We appreciate the Minister’s commitment to ensuring far more effective government oversight of State Owned Enterprises (SOEs), appointing effective Board members, ensuring that Boards appoint competent managers, tackling wastage and corruption, and, very crucially, acting against those who do not perform,” the statement said.
”On South African Airways (SAA) in particular, we believe a strategic equity partner can play an important role in SAA’s turnaround, as well as unlocking value for the fiscus which has invested significantly in the airline over the years.”