COPE President Mosiuoa Lekota, responding to the mini-budget tabled by Finance Minister Malusi Gigaba yesterday, has said that South Africa was facing a future for which the ruling party, the ANC, had no vision and no plan.
Lekota said what was needed was “a new, brave and honest approach to balance the need for fiscal consolidation while stimulating growth. What was need was brave and resolute leadership.”
The country was however not seeing such leadership.
“Quite rightly the credibility of Gigaba was questioned – the Betrayal of the Promise report clearly documents the key role played by Gigaba in the State Capture project. COPE is not convinced that Gigaba and Government created much needed credibility and trust that would entice investment in our economy.”
Lekota said instead of fiscal discipline, rising expenditure was forecast.
“Instead of seeing the selling off of failing SOE’s more good money is to be spent to bail them out. Our budget deficit is set to rise on the back of higher than anticipated spending, reduced revenue and downwardly revised growth. The shortfall between expenditure and revenue is now set to be a whopping R50 Billion.”
This, he said, would mean more borrowing and more debt.
Cope was concerned about the deteriorating state of public finances, particularly the extent of spending on salaries and wages which was crowding out out real spending.
The party had also expressed concern over the role of the Presidency through the Department of Planning, Monitoring and Evaluation in the budgetary process, “especially given the capture of our state by nefarious forces centered around the president.”
He said the Rand was depreciating and the budget speech had inspired no confidence.
“Given Gigaba’s uninspiring presentation, one must ask: ‘What motivated Zuma’s removal of Gordhan if it was not because of his fight against state capture project?'”
