Cape Town – President Cyril Ramaphosa tackled pressing financial issues, including the Reserve Bank’s autonomy and the impact of fiscal restraint on service delivery, during his final question-and-answer session of the year in the National Assembly.
According to Parliament of South Africa, President Ramaphosa responded to questions the day following the Finance Minister’s Medium-Term Budget Policy Statement (MTBPS) delivery. The discourse centered on expanding the Reserve Bank’s mandate to foster economic growth and job creation, with additional discussions on the institution’s accountability to Parliament.
The President emphasized the Reserve Bank’s primary role in safeguarding the currency’s value, asserting that South Africa’s growth and employment challenges extend beyond monetary policy’s reach. Instead, he pointed to structural issues as the root causes hindering economic expansion.
Addressing queries on inflation, President Ramaphosa underlined the negative effects of high inflation rates, particularly on the poor, and defended the current policy focused on inflation targeting. He confirmed no current plans to revise the Reserve Bank’s mandate, reaffirming its operational independence as stipulated by the Constitution. However, he acknowledged the Reserve Bank’s regular financial disclosures to Parliament as a form of accountability.
When probed about adapting monetary policies to align with grim economic growth forecasts, the President conceded that the government’s growth predictions have not been met. He cited ongoing reforms to address these shortfalls and advocated for a multi-pronged approach, utilizing both fiscal and monetary policies to stimulate economic growth.
In discussions about government cost containment and its consequences for service delivery, Ramaphosa referenced the MTBPS, outlining the nation’s fiscal status and expenditure priorities for the coming three years. He reiterated the government’s commitment to stabilizing public finances while supporting the vulnerable and preserving essential services. He pointed out the Treasury’s guidelines for cost containment, targeting non-essential expenditures and the work being done to reshape and streamline the state’s structure and services.
The session also touched on recent census results published by Statistics South Africa. The President recognized the census as a vital tool for identifying developmental needs.
Further updates were given regarding the ongoing commissions of inquiry, with the President noting significant lessons learned and progress made. He highlighted the Nugent Commission’s examination of the South African Revenue Service and the Public Investment Corporation inquiry led by Judge Lex Mpati, mentioning that their recommendations are in the process of being transformed into actionable regulations or legislation for consideration by Parliament.