The Economic Freedom Fighters (EFF) has rejected the Medium-Term Budget Policy Statement tabled by finance minister Enoch Godongwana, saying it prioritises the racialised apartheid-style of economic growth.
Godongwana tabled the MTBPS on Wednesday, 30 October, emphasising that the government is tightening its purse as state-owned enterprises will not get bailouts.
POLITICAL PARTIES REACT TO MEDIUM-TERM BUDGET POLICY STATEMENT
During his address, Godongwana said the MTBPS outlines the government’s strategy to move the economy to a higher and more inclusive growth path, which is anchored in four pillars.
These include maintaining macroeconomic stability, implementing structural reforms, supporting growth-enhancing infrastructure, and building state capability.
GNU PARTNERS WELCOMES MTBPS
On the other hand, the Democratic Alliance (DA) welcomed the MTBPS and said they will monitor the implementation of the announced measures closely.
“We will ensure sustainable economic growth and real job creation for all South Africans. We also need to see a hard fiscal rule implemented in law, in addition to our three year fiscal anchor. A hard fiscal rule legislated into law will ensure we do not move backwards,” the party said.
Likewise the Freedom Front Plus said the damage of decades under ANC rule and misguided policy directions cannot be undone overnight, however, there are rays of hope.
FF Plus member of Parliament Wouter Wessels said one positive aspect is that the finance minister realises prioritisation is needed to establish a viable and stable fiscal framework to bring about growth. And that structural reforms are needed to achieve this.
“In the past, government set out what was needed for economic growth, but the plans were never put into practice.
“The fact that the Minister for the first time announced decisive steps to reduce government’s wage bill, through probably offering officials who do not perform essential services early retirement packages, points to decisive action,” he said.
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