“South Africa is not running out of money,” says President Cyril Ramaphosa after finance minister Enoch Godongwana recently warned of revenue shortfalls and possible budget cuts.
Ramaphosa briefed the media on Monday after the ANC's national executive committee's (NEC) three-day meeting in which ministers gave reports on the state of their departments.
“The NEC received a report from our deployee minister Enoch Godongwana on the fiscal situation, or position of the country. The NEC is reassured that South Africa is not running out of money. The fiscal pressures that our country faces stem fundamentally from an economic challenge of slow and jobless growth,” he said.
The president said these should not compromise service delivery areas.
“Fiscal discipline is not the same as imposing austerity measures that will undermine our developmental agenda. The NEC, while noting revenue shortfalls and related rising debt levels, urged the government to exercise fiscal discipline in a manner that does not compromise the priority areas adopted by this ANC-led administration,” he said.
Ramaphosa said for the economy to grow there needed to be improvement in the energy sector, which has been struggling to supply stable power for years, and the logistics sector.
“Our country has turned a definite corner as far as load-shedding is concerned, and frequency of load-shedding is expected to improve during the fourth quarter. The NEC highlighted the need for urgent extension and investment in our transmission grid through new and innovative methods of funding so we can speedily ensure renewable projects in the Northern and Eastern Cape can be brought online,” he said.
Meanwhile, budget cuts have started tricklingin for departments. TimesLIVE recently reported that some healthcare services may have to be rationed in the Western Cape after the National Treasury issued a cost containment memorandum at the end of August urging departments to curb spending.
Godongwana will be tabling his medium-term budget policy statement next month and will provide more details on the revenue shortfalls.
WATCH | ‘SA is not running out of money’: Ramaphosa tries to calm fears before Godongwana’s budget cuts
Image: GCIS.
“South Africa is not running out of money,” says President Cyril Ramaphosa after finance minister Enoch Godongwana recently warned of revenue shortfalls and possible budget cuts.
Ramaphosa briefed the media on Monday after the ANC's national executive committee's (NEC) three-day meeting in which ministers gave reports on the state of their departments.
“The NEC received a report from our deployee minister Enoch Godongwana on the fiscal situation, or position of the country. The NEC is reassured that South Africa is not running out of money. The fiscal pressures that our country faces stem fundamentally from an economic challenge of slow and jobless growth,” he said.
The president said these should not compromise service delivery areas.
“Fiscal discipline is not the same as imposing austerity measures that will undermine our developmental agenda. The NEC, while noting revenue shortfalls and related rising debt levels, urged the government to exercise fiscal discipline in a manner that does not compromise the priority areas adopted by this ANC-led administration,” he said.
Ramaphosa said for the economy to grow there needed to be improvement in the energy sector, which has been struggling to supply stable power for years, and the logistics sector.
“Our country has turned a definite corner as far as load-shedding is concerned, and frequency of load-shedding is expected to improve during the fourth quarter. The NEC highlighted the need for urgent extension and investment in our transmission grid through new and innovative methods of funding so we can speedily ensure renewable projects in the Northern and Eastern Cape can be brought online,” he said.
Meanwhile, budget cuts have started tricklingin for departments. TimesLIVE recently reported that some healthcare services may have to be rationed in the Western Cape after the National Treasury issued a cost containment memorandum at the end of August urging departments to curb spending.
Godongwana will be tabling his medium-term budget policy statement next month and will provide more details on the revenue shortfalls.
[WATCH LIVE] MyANC NEC Meeting: Closing address by ANC President Cyril Ramaphosa. #ANCNEC #ANCAtWork
TimesLIVE
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