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FEATURE

Writer: Amukelani Chauke

Working towards economic growth

T

he Medium-Term Budget Policy Statement (MTBPS)

With global economic growth slowing and affecting trade

was a delicate balancing act of implementing meas-

and investment in many developing economies, National

ures to stabilise the public purse in tough economic

Treasury has taken measures to raise tax revenue while put-

times, while also making provision for social priorities. “Our central message is that stable and sustainable public

ting a lid on spending, he added.

finances, alongside economic reforms and a transparent

Economic growth

monetary policy, can support a return to the higher growth

When the Minister delivered the budget in February,

rates needed to achieve the National Development Plan’s

he projected that the economy would grow at a rate of

goals. But macroeconomic tools are not enough. If we are to

0.9 percent in 2016.

nurture the 'green shoots' in the economy, then our holistic package of measures must be implemented.

“The MTBPS revises our growth expectation for the South African economy to 0.5 percent for the 2016 calendar year,

“No one measure will work: our approach is to mobilise

somewhat lower than the February estimates of 0.9 percent.

efforts across many fronts, and to recognise a diversity of

For the current fiscal year, the revised growth estimate is

contributions in an open and multi-faceted development

1.0 percent.

framework,” said Finance Minister Pravin Gordhan when delivering the MTBPS recently.

“We currently expect growth to rise to 1.7 percent next year. With appropriate policies in place, we will see the recovery strengthen more rapidly,” he said. More rapid and inclusive growth requires concerted efforts to improve the investment environment, particularly for export-oriented and more employment-intensive manufacturing, he added. “In advancing inclusive growth and transformation we have to frame our policies and interventions in ways that reinforce confidence and investment.”

Hope in challenging times The Minister commended efforts by various sectors of society for their efforts and collaborations in dealing with the challenges the country faces. Several interventions were being implemented to tackle the current

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Public Sector Manager • December 2016 / January 2017


PSM December/January Edition 2016/2017