'We can't keep bailing out SOEs': Five quotes from Tito Mboweni's budget address
All eyes were on finance minister Tito Mboweni on Thursday, when he delivered treasury's budget address in parliament. Mboweni said although state-owned enterprises (SOEs) would receive bailouts, this must end soon.
Here are five quotes from his address.
Budget vote allocation
"The total allocation to this vote in this financial year is R30.8bn, which will allow the national treasury to conduct research on the economy, together with our partners in and out of government, and develop policies to promote economic stability and economic growth."
"In the last few years, the South African economy has significantly underperformed. Growth has lagged behind global and other emerging markets, GDP has grown slower than the population growth for five consecutive years."
Economic growth impediments
"Inefficient and poor-quality service delivery, poor education outcomes, poor productivity, inequality and unemployment. The recent economic performance requires an acceleration of government's efforts to address constraints to growth."
"In addition to the support announced during the February budget, I consider introducing a special appropriation bill in the house on 23 July this year, after consultation with the parliamentary management, to make available additional funding for Eskom, for the current and next financial year."
We expect more from SOEs
"I must emphasise that this additional government support cannot be a blank cheque to these state-owned enterprises. We really and truly cannot go on like this. A broad and strategic framework in a form of a green paper will be published. This will deal with, among others, the role that government expects from state-owned enterprises."
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