Editorial: Gordhan stands for responsible budgeting

Finance Minister Pravin Gordhan showed this week why so many South Africans believe he should be retained as the best minister in the Zuma cabinet.

With very little room for manoeuvre, he showed a steady hand and crafted a progressive budget within the confines imposed by tough economic realities, locally and globally.

The markets reacted calmly to the budget, which is a good sign in a country where history has taught that a below-par budget will always harm the economy far more easily than a strong budget can enhance it.

Not for Gordhan the populist irresponsibility some of his cabinet colleagues demand. Instead, he stuck to responsible budgeting.

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State spending was kept within the confines of last year's budget projections, while the budget deficit and government debt were stabilised - the latter remaining somewhat high, resulting in undertakings to lower it.

Indeed, debt-servicing costs at R162.4-billion remain a cripplingly high line item, hobbling the government's ability to deliver services and improve the lives of the destitute.

True as it is that South African growth will struggle to take off in the currently sluggish global economy, GDP growth of a projected 1.3% - while slightly higher than last year - is much too low, given the rate at which our population is expanding.

Although the government appears to have run out of ideas, an examination of the details of exchange control mechanisms and dividend tax, will reveal that this is not the case.

That said, as can be expected of a well-regarded finance minister, Gordhan put some meat on the bones of President Jacob Zuma's state of the nation address.

The governing party's renewed focus on land reform and redistribution, for instance, saw nearly R30-billion earmarked for that purpose, which to some degree puts paid to worries about how it could be afforded.

But context trumped content in discussion of this year's budget. It was delivered under the shadow of strong indications that Zuma would fire Gordhan and replace him with Brian Molefe, who left power utility Eskom under a cloud.

One would have hoped the R50-billion price tag attached to his disastrous previous attempt at changing finance ministers would act as a caution against such a foolish step by Zuma.

In the national interest, Gordhan should remain in his post.

Worryingly, with this president, there are no guarantees that he will act in the interests of the greater good.