AgriSA media statement on the Medium-Term Budget Policy Statement expectations
24 October 2017
Finance minister Malusi Gigaba will tomorrow table his first Medium-Term Budget Policy Statement (MTBPS) in Parliament. Given the ailing economic environment, the new Minister is under intense pressure to reassure ratings agencies. The minister needs to ensure that the economy can grow at a rate which can lead to sustained job creation. Wasteful expenditure, for example, supporting poorly managed state-owned enterprises (SoEs), should be minimised.
Agri SA looks forward to the MTBPS as an organisation fully committed to the development and sustainability of agriculture in South Africa. We hope it will make adequate resources available to boost agriculture’s competitiveness and to support farmers, especially in the drought affected areas (Western, Northern and parts of the Eastern Cape). This will help the sector to continue producing quality food for the country and contribute towards job creation and poverty alleviation, as envisaged by chapter six of the National Development Plan (NDP).
As a point of departure, the minister should take time to thank the hard-working South Africans who pay their taxes and operate profitable businesses. It is these taxes which provide the National Treasury with the necessary funds for the government to make transfer payments, in the form of social grants, funds for land reform, bailouts to SoEs and other social services.
Agri SA would also appreciate it if the minister could specifically thank the South African farming community for its contribution towards economic growth and for helping to lift the economy out of recession during the second quarter of this year, despite the hostile environment farmers currently operate under.