Gordhan shows he is the right man for a very tough job

27 October 2016 - 10:21 By The Times Editorial

This year's mini-Budget demanded a delicate balancing act from Finance Minister Pravin Gordhan. Sluggish economic growth has meant little room to manoeuvre for the minister and the Treasury, who are under extreme pressure to meet increasing demands of society, including a call for free higher education.For someone who had plenty of other things on his mind - such as having to appear in court next week on charges of fraud relating to his old job as SA Revenue Services commissioner - Gordhan handled it all well.The mini-Budget echoed what almost every household in the country feels every day: our economy is in trouble and South Africa needs all hands on deck to turn her fortunes around. It is no time for silly political games with governing party factions using state resources to fight their battles - such as the Hawks.Gordhan is right to say that, even though economic growth is expected to slow to 0.5% and the budget deficit to increase to 3.7%, the situation is far from being hopeless. Working together, the country can turn things around over the next two years.But this needs policy certainty. Instability, resulting from an apparent battle for control between President Jacob Zuma and his supporters and the finance minister and his backers, is an obstacle to any turnaround.The sooner the fight is resolved the better.Ordinary South Africans look set to fork out more through increased taxes next year to fund state programmes. Necessary as these increases might be, they will be difficult for taxpayers to accept if politicians continue with skirmishes that have little to do with governance but much with self-enrichment.While it is not enough to meet students' demands for free education, Gordhan should be commended for allocating an additional R17.6-billion to fund higher education.It is a step towards realising the state's Constitutional imperative to make education accessible to those who want to learn.After delivering his Budget speech in February, Gordhan was asked by reporters if he believed he had the political backing of his bosses. His answer was: "If I am still here in October", it would mean he had that backing.Many other South Africans might be capable of assuming the finance minister's job, but in the current economic environment Zuma would do well to keep Gordhan in situ - no matter how frustrating that may be for the president's friends...

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