Nene puts poor first

23 October 2014 - 02:29 By Jan-Jan Joubert
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Minister of Finance Nhlanhla Nene during his first ever Medium Term Budget Policy Statement inside the National Assembly.
Minister of Finance Nhlanhla Nene during his first ever Medium Term Budget Policy Statement inside the National Assembly.
Image: ESA ALEXANDER

Finance Minister Nhlanhla Nene promised yesterday to spare the poor in his austerity drive, but with South Africa in dire straits economically, the impoverished will have to bite the bullet until the lean times are over.

"Let me be absolutely clear: we will not balance the budget on the backs of the poor," said Nene in his medium-term budget policy statement delivered in the National Assembly yesterday.

He promised that "intensive effort will be focused on achieving the intended savings and maximising efficiency".

The minister acknowledged the importance of social grant programmes and welfare services in combating poverty, and the role of public health services and child-focused programmes in reducing vulnerability.

"We are not making enough progress in raising incomes or reducing poverty," he emphasised, noting that unemployment remained too high.

He vowed that poorer South Africans would be affected less by the projected belt-tightening than wealthier fellow citizens, but did not give any indication how much social grants would be increased by next year.

Nene said the government would try and "cut away the fat" by focusing on the state's payment for services, the details of which will be announced next month.

In addition, cost-containing measures, which will not affect service delivery will be implemented, though Nene did not provide any examples.

He promised greater control over the ways municipalities spend their infrastructure budgets, and to fight corruption and waste.

Regarding social spending, Nene gave the undertaking that social grants would reach 17.3million in the next three years.

He said the government remained committed to a comprehensive, responsive and sustainable social protection system, something the minister promised to "monitor better".

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