BUDGET SPEECH: Gordhan must not buckle under presidential pressure – Cope
Minister Pravin Gordhan will be tough but not as tough as steel as he ought to be when it comes to today's Budget Speech.
This is according to Dennis Bloem, Cope spokesperson, who said that he concurs with everyone who believes that this will be the toughest budget in years.
“Besides the rating agencies who are going to interrogate the figures, everyone else will seek to understand the acute pain they will have to endure,” said Bloem.
“The Minister of Finance is going to be walking a very tight rope in blustery wind.
“By far the most important consideration for Pravin Gordhan is to win the confidence and trust of investors, local and international.
“The Reserve Bank has noted that South African investors are going off shore. He must reverse this trend and get fixed direct investment flowing into the country.
“The NDP must serve as the master plan that every minister fully buys into and which government gives full effect to.
“The necessity to downsize government significantly is what will make or break our credit worthiness. We are heading in the direction of Greece. When a government is too big and too bloated the danger of falling over a fiscal cliff becomes a question of when rather than if.”
Bloem said the simplest thing that Pravin Gordhan can do is to demand a 100 per cent compliance with the Public Finance Management Act (PFMA).
“There must be no room for manoeuvre around its provisions. The huge amount of money wasted by SAPO, as the Public Protector showed yesterday, happened because the PFMA was not complied with.
“A very strict implementation of the PFMA will put an end to fruitless, fraudulent and futile expenditure. This, he can insist on and monitor.”
While austerity measures must apply in most areas, Bloem said spending on the following must still be prioritised –
* higher and basic education;
* support for drought hit farmers and communities;
* infrastructure development.
“The unemployment crisis must not become worse. Saving jobs and creating jobs will remain pivotal requirements of government.
“If Pravin wants to be remembered as an outstanding Minister and better than Des van Rooyen he should insist on the cabinet being reduced by 60 per cent.
“Zuma will not agree to that. Pravin should make it clear that there is no alternative. If government does not take the pain, the people will. When that pain becomes too much, they will revolt.
“Gordhan flew economy class a few days ago. The same should apply to all ministers, deputy ministers, premiers, mayors and senior officials.
“Whatever happens, the Minister of Finance must not buckle under presidential pressure. He must not rescue SAPO, SAA or any other parastatal. We expect him to start bringing in private sector partners and allowing each parastatal to row its own boat.
“In the end, we want to hear tough talk followed by very tough action.”
