Party says in order to prevent a further credit downgrade by Moody’s – Steve Swart
6 March 2019
Speaker, today we consider the Fiscal Framework and Revenue proposals. This against the minister of Finances recent budget speech, which clearly showed the dire financial state our public finances are in.
This is largely reflected in the Committee’s report, and must be seen against the background of slowing economic growth - a paltry 0.8% for the past financial year, resulting in lower than projected revenue collection.
The ANC-led government, in our view, is failing dismally in its central economic policy goal of accelerating inclusive growth and job creation, and ensuring sustainable finances by containing the budget deficit and stabilising public debt.
Economic growth has been revised downwards to 1,5% of GDP. Estimates of revenue collection have deteriorated further since the October 2018 MTBPS - down by R42.8bn. This is shocking and can be largely attributed to the hollowing out of SARS, as highlighted by the Nugent Commission.