#MTBPS2022: Enabling private sector-led economic growth only way to get SA back on track
The Medium-Term Budget Policy Statement delivered today by Minister of Finance, Enoch Godongwana, has made clear the major headwinds facing South Africa’s economy, with our projected economic growth rate revised downwards to 1.9 per cent for 2022, and sluggish growth projected for the medium-term.
While we welcome steps taken by the Minister to narrow the budget deficit and to stabilise government debt, we need to ensure much high levels of economic growth to change this trajectory completely. Our unsustainable debt-service costs, which will average R355.2 billion per year over the MTEF, take away life-changing and life-saving resources from front-line services and prevent significant investment in growth-enabling infrastructure.
Reversing this trend will therefore require an unwavering commitment to enabling private-sector-led economic growth, with much higher levels of private sector participation and partnership.
This must especially be the case for crumbling State-Owned-Enterprises, which will now receive some R30 billion through a special appropriation bill.
The Western Cape Government, based on the MTBPS today, will now begin to prepare its own medium-term budget policy statement which I will deliver to the Provincial Parliament on 23 November 2022, and where we will set out clear policy approach of delivering growth for jobs, safety and well-being for the people of the Western Cape.
Source: Government of South Africa