Cape Town - This is the full mini budget speech delivered by Finance Minister Pravin Gordhan in Parliament on Wednesday.
Summary of the MTBPS
• Global growth has slowed, affecting investment and trade in many developing economies.
• Our economic growth will be just 0.5% this year, rising to 1.7% in 2017. If we do the right things to support investment and confidence, our economic recovery will be more rapid.
• Measured and balanced fiscal consolidation will continue over the period ahead, with the budget deficit declining from 3.4% this year to 2.5% in 2019 to 2020.
• Debt is projected to stabilise at just less than 48% of GDP.
• Over the next two years, we propose to raise an additional R43bn through tax measures.
• The expenditure ceiling will be lowered by R26bn.
• Consolidated government expenditure will rise by 7.6% a year over the MTEF period. Additional allocations are proposed for post-school education, health services and social protection.
• Infrastructure investment, mainly in energy, transport and telecommunications, will amount to over R900bn over the next three years.
• Efforts to improve supply chain management and ensure greater value for money in public service delivery will continue to be prioritised.
Our central message is that stable and sustainable public finances, alongside economic reforms and a transparent monetary policy, can support a return to the higher growth rates needed to achieve the National Development Plan's goals.
But macroeconomic tools are not enough. If we are to nurture the "green shoots" in the economy then our holistic package of measures must be implemented.
No one measure will work: our approach is to mobilise efforts across many fronts, and to recognise a diversity of contributions in an open and multi-facetted development framework.
The Medium Term Budget Policy Statement reaffirms our approach to building a national consensus on development and transformation.
1. Inclusive growth is our objective.
2. Our macroeconomic and fiscal framework sets limits to government debt and expenditure, while supporting stronger public and private sector investment.
3. Concerted implementation of our nine-point plan for the real economy is required.
2016 Medium Term Budget Policy Statement Speech
4. Growth and development rely on policy initiatives across a wide range of sectors and Ministerial portfolios, aimed at broadening participation and enhancing economic development.
5. Structural transformation rests on a partnership between government, business, organised labour and all stakeholders who share our commitment to inclusiveness in our development path.
6. We must intensify the national dialogue to seek common solutions and concrete actions to slow growth and poverty. Just as in our historic past, we need a collective, concerted effort.
We must let hope and resilience triumph over despair and division. It's up to us.
We and South Africa are indebted to the foresight, commitment to the national interest and extensive collaboration of labour and business leaders. The stewardship of Mr Jabu Mabuza together with leaders of all our federations has been rock solid.
Finance Minister Pravin Gordhan's mini budget speech
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