The Economic Freedom Fighters (EFF) has rejected the Medium-Term Budget Policy Statement tabled by finance minister Enoch Godongwana prioritises the racialised apartheid-style of economic growth.
Godongwana tabled the MTBPS on Wednesday, 30 October, emphasising that the government is tightening its purse as state-owned enterprises will not get bailouts.
POLITICAL PARTIES REACT TO MEDIUM-TERM BUDGET POLICY STATEMENT
During his address, Godongwana said the MTBPS outlines the government’s strategy to move the economy to a higher and more inclusive growth path, which is anchored in four pillars.
These include maintaining macroeconomic stability, implementing structural reforms, supporting growth-enhancing infrastructure, and building state capability.
Reacting to the MTBPS, EFF leader Julius Malema said the MTBPS continues to prioritise strategic sectors of the economy. He questioned why Godongwana failed to address some of the most pressing social issues in the country, such as crime and unemployment.
“How do you table a medium-term budget that has no clear plan on how we’re going to reduce unemployment because the issue of unemployment in South Africa is very serious? The issue of infrastructure development is just paying lip service because there’s no clear plan on how we’re going to resolve that,” he said.
Malema said the alliance between the Democratic Alliance (DA) and the ANC has finally buried the misconceived and misguided National Development Plan (NDP), as it was not mentioned in the statement. Additionally, he said the economy will not grow as the government keeps lowering its targets.
Malema said that as long as the government keeps lowering its targets and fails to achieve them, it will never reduce the high cost of living in the country.
“Austerity measures are the ones that are being used to curb government debt, but they come at the expense of ordinary people, especially the working class in South Africa.
“There is no clear direction as to how do you curb government debt but manage to give our people services and not impose austerity measures that will worsen the cost of living, increase poverty, and worsen unemployment,” Malema said.
Unsurprisingly, the ANC welcomed the medium-term budget, saying as the leader of the Government of National Unity (GNU), it will ensure that the priorities outlined are implemented so that the pace of economic growth and job creation can be accelerated.
“We are fully aware that it is through a sustained period of economic growth that South Africa will be able to significantly reduce unemployment, poverty, and the cost of living to improve people’s lives,” spokesperson Mahlengi Bhengu-Motsiri said.
The uMkhonto weSizwe (MK) Party criticised the Medium-Term Budget Policy Statement, saying it did not address unemployment, how government plans to reduce inequality and poverty.
GNU PARTNERS WELCOMES MTBPS
On the other hand, the Democratic Alliance (DA) welcomed the MTBPS and said they will monitor the implementation of the announced measures closely.
“We will ensure sustainable economic growth and real job creation for all South Africans. We also need to see a hard fiscal rule implemented in law, in addition to our three year fiscal anchor. A hard fiscal rule legislated into law will ensure we do not move backwards,” the party said.
Likewise the Freedom Front Plus said the damage of decades under ANC rule and misguided policy directions cannot be undone overnight, however, there are rays of hope.
FF Plus member of Parliament Wouter Wessels said one positive aspect is that the finance minister realises prioritisation is needed to establish a viable and stable fiscal framework to bring about growth. And that structural reforms are needed to achieve this.
“In the past, government set out what was needed for economic growth, but the plans were never put into practice.
“The fact that the Minister for the first time announced decisive steps to reduce government’s wage bill, through probably offering officials who do not perform essential services early retirement packages, points to decisive action,” he said.
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