Official Newspaper of the Parliament of the Republic of South Africa Vol 02
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Vol 02 Official newspaper of the Parliament of the Republic of South Africa Issue 08 2020 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA www.parliament.gov.za parliamentofrsa 2 INSESSION NEWS We must rebuild our economy, rehabilitate our public finances and recover from the Covid-19 devastation “WE MUST REBUILD OUR ECONOMY, REHABILITATE OUR PUBLIC FINANCES AND RECOVER FROM THE DEVASTATION WROUGHT UPON US BY COVID-19. THE TABLING OF THE ECONOMIC RECONSTRUCTION AND RECOVERY PLAN IS A MEANS TO THIS END.” - Mr Tito Mboweni Mr Tito Mboweni The South African economy must negotiate itself out of the binary of a budget deficit and the socio-economic effects of Covid-19, the Minister of Finance, Mr Tito Mboweni, told South African citizens and investors in the Medium Term Bud- get Speech (MTBS) he tabled before Parliament recently, writes Abel Mputing. “It’s time to rebuild, like This speech sets out active the procurement of almost modernise the cross-border between the Banking Mandela did in 1994,” he measures to avoid this risk 12 000 MW of new electricity flows management regime to Association, the National proclaimed. Nelson Mandela and realise the ideals of the capacity to be provided by support South Africa’s growth Treasury and the South inherited an apartheid Economic Reconstruction and independent power producers as an investment and financial African Reserve Bank, work is economy that could not meet Recovery Plan,” he said. to avert the effects of load hub for Africa.” underway to review the loan the expectations of a new shedding on the economy. guarantee scheme to improve South Africa, but he turned it To foreground his assertion, To give impetus to job business take-ups and to into one of the most thriving he pointed out that this National Treasury is optimistic creation, the President’s boost business restart efforts.” economies in Africa. “Fiscally plan will be driven by “a that the district development employment initiative we are not unlike that in consolidated government model will fast-track received well over R12.6 Well aware that he is 1994. We must rebuild our spending of R6.2 trillion infrastructure and socio- billion in this financial presiding over a budget economy, rehabilitate our over the 2021 Medium Term economic development by year. “We augmented the haunted by fraud and public finances and recover Expenditure Framework, of leveraging and coordinating provincial equitable share corruption, the minister gave from the devastation wrought which R1.2 trillion goes to the infrastructure expenditure by R7 billion to support jobs an account of how the R500 upon us by Covid-19. The learning and culture, R978 of the three spheres of at fee-paying public schools billion stimulus package tabling of the economic billion to social development governance. “The revised and government-subsidised was allocated. “It is not true reconstruction and recovery and R724 billion to health”. division of revenue for independent schools. R600 that the R500 billion relief plan is a means to this end.” South Africa has a growth 2020/21 proposes allocations million goes to employ early package has been entirely forecast of 3.3% in 2021,1.7% of R806.7 billion to national childhood development and lost to corruption. As pointed This plan is urgent and all of in 2022 and 1.5% in 2023. departments, R628.3 billion to social workers. R2 billion out above, it is being used us should do everything in Green shoots are emerging provinces and R139.9 billion is allocated to Working for to cushion the impact of the our power to implement it, and “it looks like there will be to local government, part Fire, Working for Water and pandemic.” he declared. The consensus- a strong rebound in the next of which will contribute to Working for Forests.” driven and action-oriented quarter”. infrastructure investment,” he Mr Mboweni cautioned that economic plan announced by said. According to Mr Mboweni, South Africa needs to curb President Cyril Ramaphosa Infrastructure and energy are work is also underway to borrowing to maintain its gives a strategic direction to at the heart of this economic Cross-border trade flows improve access to finance by financial health. “Right now, this newly found resolve. “It’s optimism. Realising the have been identified as small business entrepreneurs government is borrowing at mainly driven by the concern significance of energy to the economic catalysts that who have been most affected a rate of R2.1 billion per day. to avert our fiscal from turning economy, he maintained that need special attention. by lockdown regulations. An untenable predicament. into a sovereign debt crisis. the way has been opened for “Work is well advanced to “After extensive consultations As such, there is urgency COMMITTEE BRIEFED ON MTBPS 3 to ensure that South African taxes are spent on SA’s debt could be investment and service delivery mandates rather than on servicing debt.” greater than our GDP He explained why countries that find themselves in default see sharp if we fail to tackle it – gross domestic product contractions and currency Mboweni Editor depreciations. “On current Brent Simons trends, more of our taxes After tabling the Medium-Term Budget Policy Statement (MTBPS) Production editor are being transferred to in Parliament, the Minister of Finance, Mr Tito Mboweni addressed a Mava Lukani bondholders, rather than joint meeting of the Portfolio Committee on Finance, the Select Com- Design and layout to critical services for our MIND TRIX MEDIA people.” mittee on Finance, the Standing Committee on Appropriations and the Copy editors Select Committee on Appropriations, writes Abel Mputing. Jane Henshall, Vusumzi Nobadula Part of the fiscal consolidation measures During the engagement, my comment in this regard in that the economic Writers aimed at bringing about Abel Mputing, Rajaa Azzakani, Minister Mboweni proclaimed the past I have been told it’s reconstruction and recovery Sureshinee Govender, Liezel improved governance and that the most important not my lane. I don’t have an plan is not a government plan, Visser, Modise Kabeli, Faith strict budget management Ndenze, Mava Lukani aspect of the preceding answer to that, because it’s but simply a means to unblock include the notion of zero stakeholder engagement not my lane.” business activities. “We all Photography budgeting. “We must discard is the consensus achieved know the major employer is Mlandeli Puzi, Zwelethemba Kostile those things that we no in the National Economic Discussing the MTBPS’s the private sector. This is both longer need to do and scale Development and Labour contribution to alleviating a public and private sector Distribution & subscriptions Jacqueline Zils up those that are essential Council that it is necessary to financial distress brought plan. Yes, government will for progress.” stabilise the 95 per cent debt about by Covid-19, committee take part in implementing Publisher to gross domestic product members asked about some of its milestones, but Parliament of the Republic of South Africa Operation Vulindlela will (GDP) ratio. national Treasury’s ability to in the main this plan seeks be a critical coordination assist South Africans during to unlock the potential of the Printer Vision Enterprises tool to unlock and fast- Any slippage in arresting future Covid-19-related private sector, to also harness track the implementation debt “would lead to 100 lockdowns. The Director- a coordination between public Section Manager: of the structural economic per cent mark of debt that General of National Treasury, and private sector.” Publishing and Production Shirley Montsho reform agenda. “Deputy will be greater than the Mr Dondo Mogajane, replied: Minister David Masondo is country’s GDP”, he asserted. “We are now better paced to The Chairperson of the Copyright INSESSION is is published by leading this initiative, and This is the moral of the fiscal deal with any lock measure in Portfolio Committee a technical team headed by the Information and Content framework that underpins the future than ever before.” on Finance, Mr Joseph Development Unit of the Dr Sean Phillips will draw MTBPS, because “the debt Maswanganyi, asked the Parliamentary Communication on expertise and capacity Services of the Parliament servicing cost could crowd out However, this depends on National Treasury to present of the Republic of South Africa. from the public and private government social welfare stabilising public sector wages its debt management strategy All material published is sectors. This will ensure that programmes”. because tax revenue collection to the committees in the copyrighted and cannot be the implementation is well reproduced without the written has contracted by 300%, near future. “If debt is not permission of the publisher. coordinated, sequenced and The minister was at pains to according to Mr Mogajane. If managed, it will crowd service timeous.” EDITORIAL ENQUIRIES explain to members of these expenditure on compensation delivery programme outside Telephone 021 403 8738 committees that Treasury can be curbed, Treasury of our budget and that could Fax 021 403 8096 had to cut R10.5 billion from “could experience R10 billion create social unrest. We have E-mail [email protected] other departments to make reduction in 2021/22 and to avoid that.” Subscriptions the funds available to rescue outer years by R15 billion.” [email protected] Post South African Airways (SAA). He also stated that the PO Box 15, Cape Town, 8000 Committee members asked Asked by members