BUDGET POLICY FOCUS BY KOKETSO MAMABOLO
Sifting Through The Numbers Recovery, Stability, Reform and Growth A CRISIS LIKE NO OTHER “This is a crisis like no other,” were the Minister of Finance's words to the nation, when he gave the first Medium-Term Budget Policy Statement (MTBPS) of his tenure in office. Minister Enoch Godongwana’s welcome to parliament as the accounting officer for Treasury could not have come at more of a difficult time. His first MTBPS was also the 25th one tabled to parliament. 2020 saw a 6.4% contraction in GDP, as economic activity was stifled by efforts to combat the spread of the pandemic. Treasury now expects real growth to sit at 5.1%, 1.8 percentage points up from earlier in the year. Hon. Gondongwana took over the reins of a department that
has to find a balance between fiscal responsibility and social expenditure while still meeting the goals set out in the National Development Plan.
Creating a competitive energy market will help contain the costs of generating electricity and support GDP growth. “The 2021 Medium-Term Budget Policy Statement is about navigating South Africa’s path to economic and social recovery, drawing on the resilience of her people as well as restoring the sustainability of our public finances and the dignity of our people in the face of a once-ina-lifetime pandemic,” said the Minister.
22 | Public Sector Leaders | December • January 2022
The tools the government will use to achieve this include structural reforms and social expenditure policies geared at providing immediate support. The Minister repeated the state’s position on long-term support: “Let me however reiterate that a permanent solution in responding to these challenges is to achieve high and sustained levels of economic growth.” Beyond structural reforms and spending priorities, the speech was also notable for an update on the review of procurement processes, which will be safeguarded against corruption through the Public Procurement Bill, which is now in its final stages. “We anticipate that the Bill will be tabled before Parliament in the 2022/23 financial year,” - Minister Godongwana.
