SACCI EXPECTATIONS OF THE 2013 MTBPS
The South African Chamber of Commerce and Industry (SACCI) is eager to hear Minister Pravin Gordhan provide details of this years' Medium-Term Budget Policy Statement (MTBPS). SACCI expects that the Minister will discuss the following topics during his address:
South Africa's credit rating and government debt
South Africa's economic growth is highly dependent on attracting and sustaining the interest of foreign investors. It is arguably the most important immediate policy priority because the government needs to borrow funds as cheaply as possible in the short term to expand our infrastructure network and accommodate the growing public sector wage bill. Despite these short-term pressures that necessitate borrowing, the National Treasury must also present a credible plan on how government debt will be reduced over time in order to improve our credit rating and facilitate easier access to finance for the private sector.
Carbon tax
SACCI has been at the forefront of advocating against the proposed Carbon Tax that would lead to massive job losses and further entrench South Africa's de-industrialisation trend. Other concerns over the impact on investor confidence and the sustainability of various sectors ranging from heavy industry to agriculture implies that Minister Gordhan should present a more feasible plan and delay the implementation in 2015 in order to provide sufficient time for stakeholders to fully deliberate on the issue.