Tito Mboweni must deal with a “six pack” of challenges during the “mini budget” in Parliament
22 October 2018
President Cyril Ramaphosa’s “new path” of economic growth, employment and transformation was shattered when the economy slipped into recession in South Africa.
We are now in deep economic trouble, with ordinary people, experiencing an income squeeze, following tax increases and petrol price hikes, and with 9.6 million people who do not have jobs, or who have given up looking for jobs, in South Africa.
What this means is that the Minister of Finance, Tito Mboweni’s, “mini-moon” is over and he faces a “six pack” of challenges that will have to be dealt with in his “maiden” Medium-Term Budget Policy Statement, which will be delivered on 24 October 2018 in Parliament.
We believe the minister should:
- define himself by explaining his flirtation with radical economic transformation and clarifying his views on extending state ownership in the mining sector, establishing a state bank and creating a sovereign wealth fund;
- present a credible plan to boost economic growth to at least 3% by announcing a package of structural reforms designed to increase private sector investment;
- hold the fiscal line by announcing a comprehensive spending review and presenting a credible plan to stabilise national debt at, or below, 50% of GDP;
- restore public trust by announcing that the Commissioner of the South African Revenue Service, Tom Moyane, will be removed and a new appointment will be made without delay;
- announcing that the national airline will be placed in business rescue with a view to privatising, or part privatising, South African Airways; and
- disclosing the terms and conditions of the confidential R33.4 billion loan to Eskom from the Chinese Development Bank.
We believe that if Minister of Finance, Tito Mboweni, deals decisively with the “six pack” of challenges during the Medium-Term Budget Policy Statement, he will give hope to the 9.6 million people who do not have jobs, or who have given up looking for jobs, in South Africa.
Issued by David Maynier, DA Shadow Minister of Finance, 22 October 2018
