Joint efforts needed to grow economy

Thursday, November 2, 2017

While government remains committed to initiatives geared towards growing the economy, it has called on South Africans to join in the efforts.

“In a constrained fiscal space, government’s commitment to meet challenges in South Africa is demonstrated by interventions to grow township and rural economies, strengthen good governance at state-owned companies, as well as the additional significant allocation of funding higher education,” Communications Minister Mmamoloko Kubayi-Ngubane said on Thursday.

“The adjustment budget continues to drive inclusive growth and fiscal consolidation whilst protecting and promoting social expenditure in education, health, basic infrastructure and social security, which many fellow South Africans rely on to enjoy a better life,” the Minister said.

She was addressing the media after a Cabinet meeting which welcomed the Medium Term Budget Policy Statement (MTBPS) delivered by Finance Minister Malusi Gigaba, in Parliament, Cape Town, last week.

In his medium budget, Minister Gigaba announced a downward revision of the projected economic growth to 0.7%. He also announced measures to avoid an expenditure ceiling breach and to arrest the widening of the budget deficit.

The Minister also announced a package of measures aimed at stabilising government debt, including the formation of a Presidential task team to come up with proposals to achieve this target.

South Africa’s economic growth can be turned around if a number of uncertainties are addressed to boost investor confidence.

As such, Minister Gigaba has urged the private sector to get more involved and partner with government to stimulate the economy on a positive trajectory.

Meanwhile, Cabinet welcomed the announcement of over one billion US dollar to be invested over several months in the South African economy in technology, education and agribusiness.

This was announced by Ambassador Harold Doley, Jr, the Governor of the African Development Bank. -

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