Cape Town: While there might be a difference of opinion on how to address the myriad of challenges facing South Africa, the Government of National Unity (GNU) agrees on the strategic task of fiscal consolidation. Addressing the RMB-Sunday Times post-Medium Term Budget Policy Statement (MTBPS) dialogue, Finance Minister Enoch Godongwana said while working on the budget, there was a unity of purpose on fiscal consolidation, although parties in the GNU may disagree on the pace of the fiscal consolidation.
According to South African Government News Agency, Godongwana highlighted that doing the budget under the GNU was seamless due to the strategic alignment on fiscal consolidation. “We have the Minister’s committee on the budget. The three major budgets are represented there. There was not a single descending voice because we agree on the strategic task of fiscal consolidation,” he stated. He further emphasized that despite some differences, the GNU is committed to working together and will continue to do so for
the next five years, aiming to deliver on its promises.
Godongwana delivered the first MTBPS on Wednesday to Parliament since the GNU was established in the seventh administration. He reflected on the fractured state of society leading up to the elections and expressed satisfaction with the unity of purpose achieved by the GNU. The positive sentiment resulting from this unity has been notably impressive, according to the Minister.
The Finance Minister also addressed the nation’s significant challenge of economic growth. He pointed out that a growing economy would help solve unemployment, poverty, and debt issues. To tackle these challenges, National Treasury has identified four pillars to elevate the economy to a higher and more inclusive growth path. These pillars include creating a conducive environment through macroeconomic stability, implementing structural reforms, supporting growth-enhancing infrastructure, and building State capability.
National Treasury forecasts a domestic real Gross Domestic Prod
uct (GDP) growth of 1.1% in 2024, lower than the previous estimate of 1.3% in February. Over the medium term, growth is expected to average 1.8%. Godongwana stressed that higher inclusive growth is necessary to meet the aspiration of a better life for all, with a focus on stable and predictable macroeconomic frameworks and strengthening local government.
The government is also working on initiatives to enhance public service by introducing younger talent through early retirement. This is part of building a capable, ethical, and developmental government. The Minister highlighted efforts to harness digital infrastructure to improve service delivery, including digitizing social grant processes, broadening access to employment pathways, rolling out digital identification documents, creating a centralized website for government services, and digitizing health records management for National Health Insurance rollout.