Cape Town – The Government of National Unity (GNU) in South Africa has reached a consensus on the importance of fiscal consolidation, despite differing views on its pace, Minister Enoch Godongwana says.
The minister said this unity during the RMB-Sunday Times post-Medium Term Budget Policy Statement (MTBPS) dialogue in Cape Town on Thursday, noting that all major parties in the GNU support the strategic goal of fiscal consolidation.
“Doing the budget under the GNU was easy. We have the Minister’s committee on the budget. The three major budgets are represented there. There was not a single descending voice because we agree on the strategic task of fiscal consolidation.
“We are working very well [together]. We may differ on some issues but on substantive matters, we are on the same page. Despite what the analysts say, the GNU will be here for five years because there is a commitment with those in government to make it work and deliver,” the minister said.
Godongwana emphasised the need for economic growth to address unemployment, poverty, and debt, pointing to a forecasted GDP growth of 1.1% for 2024.
To foster economic growth, National Treasury has identified four key pillars: maintaining macroeconomic stability, implementing structural reforms, supporting infrastructure development, and building state capability, he said.
“If we had a growing economy, we would solve the issues of unemployment, poverty and the problem of debt. If we had a growing economy, we would have the capacity to service the debt. South Africa has to refocus on growing the economy. We have had a growth problem for more than a decade,” said Gpdpngwana.
Initiatives to improve service delivery and introduce younger talent into the public service were also outlined, including digitising processes for social grants and health records.
Godongwana expressed confidence in the GNU’s ability to deliver results over the next five years, despite external skepticism.
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Compiled by Betha Madhomu
