GNU PARTNERS WELCOME MINI BUDGET

Thu 31 October 2024:

Finance minister Enoch Godongwana’s medium-term budget was welcomed by partners in the government of national unity (GNU). Pragmatic and balanced, parties said it struck the right note. Opposition parties were less happy, though.

In his first budget since the formation of a coalition government, Godongwana was compelled to meet expectations from a variety of corners. He centred it on four “pillars”: macroeconomic stability, structural reform; infrastructure, and state capability.

Democratic Alliance (DA) leader John Steenhuisen and Rize Mzansi leader Songezo Zibi – both coalition partners – threw their weight behind the medium-term budget. But the Economic Freedom Fighters (EFF) slammed it as a “neoliberal budget”. Another opposition party, ActionSA, criticised it as “more of the same”.

Steenhuisen said the budget was the “product of deep consultation within the GNU”. He added that it was “the right diagnosis” and “the right remedy to get South Africa back onto the path of fiscal growth and fiscal stability”.

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“It’s a very balanced reflection of the priorities of the GNU, which will also then further be solidified in the medium-term development plan which will be released in early January and you will see these reforms carried through in there in much more granular detail.”

On infrastructure, Zibi said: “It emphasises what RISE Mzansi has always said, that we need to accelerate investment in critical infrastructure to enable service delivery and commercial activity”.

“With debt repayments of R388-billion in this financial year alone, we will need a mix of public and private capital injection or get left behind in terms of our rail, water, road and other infrastructure critical to economic growth,” he added.

However pleased coalition partners may have been to hear what they did in Godongwana’s budget speech on Wednesday, opposition parties naturally voiced disagreement with the government’s spending plans.

EFF leader Julius Malema slammed it as a march towards privatisation.

“It’s intention is to continue privatisation of strategic sectors of our economy. Howcome do you have a mid-term budget that has got no clear plan on how we are going to reduce unemployment? The problem of unemployment in South Africa is very serious

ActionSA MP Alan Beeseley was unconvinced.

“This budget is a testament to more than a decade of failed policy, misplaced priorities, and effective public service. ActionSA continues to advocate for responsible debt management, South Africans deserve leadership that will prioritise sustainable growth and change, pushing for policies that create jobs, reduce debt, and ensure that future generations are not left to shoulder the burden of this government’s failures.”