Political and economic attention has moved to Finance Minister Pravin Gordhan’s budget, which will be tabled in Parliament on February, 27. This will take place against a backdrop of sluggish growth, a widening earnings gap and turbulent labour relations in the mining sector.In the Mid-Term Budget Policy Statement last year, Gordhan forecast a deficit of 4.5% of GDP for 2013/14. Gordhan said South Africa’s sovereign credit rating is Triple-B from Triple-B-plus in January, citing rising social and political tensions and the inability of the government to implement effective reforms.Delivering his State of the Nation Address, last night, President Jacob Zuma said the Finance ministry will review its tax regime this year. This will include having another look at mining royalties to ensure that government raises sufficient revenue from the economy.
This morning, addressing the NewAge/SABC business breakfast at the Grandwest Casino in Goodwood outside Cape Town,Zuma has reiterated that government is committed to fighting corruption. He says, amongst other things, they are reviewing the tender system.
“So we are sort of fighting corruption… we are. It’s difficult as you know even at times police officers are found to be involved in it. It is endemic, something, we need all of us to participate. We have been calling the community and society to report these cases of people who are doing certain things and those that are reporting many of them are being attended to.”
– By Morafe Tabane
