Gigaba's budget his 'defining moment': DA

Tomorrow's medium-term budget policy statement will be a "defining moment" for Finance Minister Malusi Gigaba, who is not "trusted by the markets", says the DA.

The party's spokesman on finance, David Maynier, said in a pre-statement press conference yesterday that Gigaba's maiden budget speech as finance minister would need to "inspire confidence" in investors and South Africans alike, but that he believed the minister had little "political space in which to manoeuvre".

Maynier said Gigaba would need to tackle five big challenges, among them weak economic growth, which he believes will be revised down to about 0.6% for 2017.

Maynier said the minister should also focus on "institutional vulnerability" with the autonomy of the Reserve Bank, the Public Investment Corporation and the Treasury all currently under threat.

He said Gigaba, who is "not trusted, especially by the markets", needed to make a "strong and unequivocal statement to the state capturers" that supports the independence of the Reserve Bank, PIC and Treasury.

The fourth area of focus should be what DA deputy spokesman on finance Alf Lees termed "zombie state-owned enterprises", such as the massive loss-generating SAA.

Lees said the minister would have "no option but to provide for both an emergency bailout of SAA, totalling R5.2-billion and a further R4.8-billion for working capital in the adjustments budget".

The fifth area of concern was "long-term fiscal risks" such as the nuclear plan.

Maynier said Sunday Times reports at the weekend that new Energy Minister David Mahlobo was appointed after a warning from the Russians to push the project through "signals an intention to accelerate the programme, which is terrifying".