Government would maintain a countercyclical fiscal policy over the next three years by growing expenditure to bolster job creation, the Minister of Finance Pravin Gordhan revealed today, while warning that revenue collection is expected to be R13 billion off target.
Amid concerns over a sluggish global economic recovery and the unresolved European debt crisis, the government plans to focus more on investing in infrastructure and boosting industrial capacity while looking to set up a special nest-egg fund to held build the economy- Finance Minister Pravin Gordhan
The National Treasury wants to make it easier for foreigners to invest in South Africa and promote the country as a gateway into Africa by overhauling the prudential and investment regulatory framework
Government plans to transform the economy by expanding growth and job creation, while developing a more effective public service, says Finance Minister Pravin Gordhan. He said a sound fiscal position has allowed government to sustain public services and to increase spending on investment aimed at raising future growth.
Parliament will consider a R60 billion loan to state power utility Eskom to be used to help fund its capital expenditure programme. Finance Minister Trevor Manuel, while delivering his Mid-Term Budget Policy Statement (MTBPS), highlighted that there will be six separate bills brought before Parliament for consideration, including the Eskom Loan Special Appropriation Bill.
The current economic storm prevailing on global markets will not deter government from focussing on its fight against persistent challenges of poverty and unemployment. "Our challenges are to eliminate poverty, to raise employment, to broaden opportunity and to improve the lives of all, particularly the most disadvantaged among us.
Global economic conditions have forced the downward revision of expected growth. "Projections for South Africa?s output growth in 2008 and 2009 have been revised downward to 3.7 percent and 3 percent respectively", said Finance Minister Trevor Manuel, delivering the Mid-Term Budget Policy Statement (MTBPS) in Parliament.