Gordhan’s plans to re-ignite economy

Gordhan said, “ These are unacceptable to all of us. I have a simple message. We are strong enough, resilient enough and creative enough to manage and overcome our economic challenges.”

The minster delivered his speech in parliament at the presence of President Jacob Zuma, his cabinet colleagues and many distinguished guests.

He said, “All of us want jobs, thriving businesses, engaged professionals, narrowing inequality, fewer in poverty. All of us want a new values paradigm, a society at peace with itself, a nation energised by the task of building stronger foundations for our future society and economy.”

Gorham said people want government to function effectively, and work in dignity, decent homes and opportunities for their children.

He stated that people want to see progress throughout the land, in agriculture, manufacturing, mining, construction, tourism, science and research, sport and leisure, trade and commerce.”It is within our grasp to achieve this future. It requires bold and constructive leadership in all sectors, a shared vision, a common purpose, and the will to find common ground. Above all we need action, not just words.”

Gordhan said the government has a plan to:

· Manage our finances in a prudent and sustainable way.

· Re-ignite confidence and mobilise the resources of all social partners.

· Collectively invest more in infrastructure to increase potential growth.

· Give hope to our youth through training and economic opportunities.

· Protect South Africans from the effects of the drought.

· Continuously improve our education and health systems.

· Accelerate transformation towards an inclusive economy and participation by all.

· Strengthen social solidarity and extend our social safety net.

Gordham said tthe past year has seen a deterioration in the global economy and in this region, weaker business confidence coincided with a severe drought,

bringing with it rising prices and threats to water supply in many areas.

“What we should stop doing: Corruption and waste. Bailing out state entities,” he said

Against the background of slow growth, rising debt and higher interest rates, Gordhan said

· The pace of fiscal consolidation will be accelerated. The budget deficit will be reduced to 2.4 percent by 2018/19.

· The expenditure ceiling is cut over the next three years by R25 billion, mainly by curtailing personnel spending.

· Tax increases amounting to R18 billion in 2016/17 are proposed, and a further R15 billion a year in 2017/18 and 2018/19.

· An additional R16 billion is allocated to higher education over the next three years, funded through re-prioritisation of expenditure plans.

· Taking into account projected increases in the cost of living, R11.5 billion is added to social grant allocations over the next three years.

· Investment in our cities is being accelerated, creating opportunities for participation of developers and other partners in housing, infrastructure and commercial development.