There was general muted encouragement for the Budget, with most economists being cautiously optimistic. However, the ANC and the Left were enthusiastic.
The Cape Times' fawning praise of the Budget that it drew "wide praise from corporates, economists and politicians alike" is an exaggeration of what economists said. The superlatives and kudos their editorial ("A budget of hope", February 25) heaped on finance minister Pravin Gordhan - "brave and innovative; thinking out of the box" - made me think for a moment they had morphed into Gordhan's PR company. But then the Cape Times is unashamedly an ANC-leaning newspaper, always telling the "good story".
Ultimately, it's misleading to think this budget, this year, on its own will change South Africa's fortunes without continual and concerted efforts to revive a moribund economy, drastically reduce government spending, especially the bloated and inefficient public sector of which there was no specific mention, and instill policy certainty. These investors and ratings agency repeatedly stated is absent and pushing South Africa to junk status.
The Cape Times' fawning praise of the Budget that it drew "wide praise from corporates, economists and politicians alike" is an exaggeration of what economists said. The superlatives and kudos their editorial ("A budget of hope", February 25) heaped on finance minister Pravin Gordhan - "brave and innovative; thinking out of the box" - made me think for a moment they had morphed into Gordhan's PR company. But then the Cape Times is unashamedly an ANC-leaning newspaper, always telling the "good story".
Ultimately, it's misleading to think this budget, this year, on its own will change South Africa's fortunes without continual and concerted efforts to revive a moribund economy, drastically reduce government spending, especially the bloated and inefficient public sector of which there was no specific mention, and instill policy certainty. These investors and ratings agency repeatedly stated is absent and pushing South Africa to junk status.
The overall analysis I read are more sober than the ANC's rosy assessment. For example, economist Dr Cees Bruggemans writes there is "no major bold strategic moves; promises of spending reductions; attempt to address rating agencies and business concerns; vague state owned enterprise reforms and keeping the electorate broadly satisfied. The political imperative keeps trumping the economic one".
Like
many I believed there was unrealistic expectation Gordhan would make
the significant shift investors would have liked to see and country
needs. This is not the ANC way, especially in an election year. It's
their way to think words speak louder than actions.
South African business and analysts always praise the country's finance ministers highly, from Trevor Manuel, to Gordhan, Nhlanhla Nene and Gordhan again. It's because the bar has been set so low. In my opinion Gordhan, like is predecessors, is slightly better than adequate. While they may be better than their cabinet peers in most regards, they are creatures of the ANC and its out-of-step world-view.
For example, Gordhan's response to a question at the post-Budget breakfast on the size of the cabinet and the burden it's placing on the economy said while he couldn't comment on the size of the cabinet it "doesn’t cost billions of rands, but having two houses (in Cape Town and Pretoria) does.”
This is crap. Reducing the bloated cabinet by half - among the largest in the world offering poor value - will save over R4 billion a year. But having one capital (in Pretoria) will save only R500 to R750 million. If he doesn't understand, or believe, the facts and numbers, it's small wonder we have been pushed to the precipice with weird ANC-economics.
South African business and analysts always praise the country's finance ministers highly, from Trevor Manuel, to Gordhan, Nhlanhla Nene and Gordhan again. It's because the bar has been set so low. In my opinion Gordhan, like is predecessors, is slightly better than adequate. While they may be better than their cabinet peers in most regards, they are creatures of the ANC and its out-of-step world-view.
For example, Gordhan's response to a question at the post-Budget breakfast on the size of the cabinet and the burden it's placing on the economy said while he couldn't comment on the size of the cabinet it "doesn’t cost billions of rands, but having two houses (in Cape Town and Pretoria) does.”
This is crap. Reducing the bloated cabinet by half - among the largest in the world offering poor value - will save over R4 billion a year. But having one capital (in Pretoria) will save only R500 to R750 million. If he doesn't understand, or believe, the facts and numbers, it's small wonder we have been pushed to the precipice with weird ANC-economics.
Like Montalto and others I think the budget did not do enough to avoid a downgrade later this year. Praise is premature.
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