Finance Minister Pravin Gordhan Photo: Nicholas Rama Finance Minister Pravin Gordhan Photo: Nicholas Rama
Finance Minister Pravin has remained unfazed by reports of former Eskom boss Brian Molefe taking over his job.
National Treasury said Gordhan would not be distracted by these reports when he delivered the Budget on Wednesday. Treasury spokesperson Yolisa Tyantsi said Gordhan had been working the whole weekend on the Budget.
“He is more than ready. In fact, the actual budget is done now. They are now working on the speech,” she said.
This is expected to be an austerity Budget by Gordhan. He has been pushing for cost-cutting measures in the public purse, and has cut the frills in government.
However, the report of the auditor-general last year on the increase in irregular expenditure pointed to a lack of financial prudence in the state. Irregular expenditure shot up to almost R40 billion last year with the auditor-general warning that this could blow spending in government.
He singled out the departments of health and public works in the provinces for this massive increase in irregular expenditure.
Gordhan has been trying to get investors to put their money in the economy. This would ensure a high level of growth.
Last year it emerged that investors were sitting on a R600 billion cash pile, but they have not pumped it into the economy.
In his meeting with business, labour and government a few weeks ago, President Jacob Zuma called for more investments in the country.
Gordhan has also commended the commitment demonstrated by business to get the country out of the woods.
He is expected to identify key job drivers in the various sectors of the economy as more people have been joining the ranks of the unemployed.
Statistics South Africa said in its survey last year that unemployment remained stubbornly high at 26%. Cosatu has also complained that the economy has not been growing enough to create more jobs.
The last time it grew above 4% was before the global financial crisis in 2008.
Gordhan is also expected to talk about how to manage ballooning debt, currently sitting at R1.7 trillion. This far exceeds the country’s budget of more than R1.2 trillion.
He may also talk about the nuclear issue now that Eskom has gone out to test the market. Last December Eskom issued a Request for Information to interested parties and 22 companies have expressed an interest in bidding for the R1 trillion nuclear tender.
Eskom has said it will issue a Request for Proposal on the tender after this phase has been concluded.
Zuma has said this project would be done on a scope and scale that South Africa could afford.
However, opposition parties have warned that the nuclear project would bankrupt the state.
