Job creation is high on the agenda of government and civil society – concerned about how to stimulate GDP growth in the current economic climate. The Budget Statement was a commitment to ‘normalisation’ of public finances, in recognising the balance between growing GDP and curbing government expenditure.
- Given the social challenges South Africa faces and the always limited budget resources, issues of accountability and participation are crucial, as they encourage effective use of public resources.
- There is likely to be continued tension between government budgets and the preferences of the political left. The 2010 MTBPS is fairly conservative in its insistence on faster deficit reduction as the best use for likely moderate revenue overruns; and its pragmatic approach to measures to intervene in the currency markets may not be seen as interventionist enough. Also, while the MTBPS affirms basic commitment to national health insurance (NHI), the Minister also re-iterated that deliberation about the subject still needed to take place.
- South Africa Sees Lower Deficit, Moves to Sell Rand (businessweek.com)
- UPDATE 3-S.Africa wants weak rand to aid growth despite G20 (reuters.com)