Finance Minister Tito Mboweni says government needs to deal with the public sector wage bill.
Finance Minister Tito Mboweni says now is the time for South Africa to make preparations for economic prosperity in the future.
Mboweni has told Parliament in his Mid-Term Budget Policy Statement that South Africa’s expenditure continues to exceed revenue, and debt continues to increase. He says some South Africans are turning on their fellow Africans as economic hardship deepens.
The Finance Minister has told Parliament that, like any good farmer, South Africans should now take actions that will allow for economic prosperity in the coming years.
“As any farmer will tell you, if you want a bumper harvest, you must be prepared to work hard during the end of winter and early spring. Because what you do to the soil then determines how successful your crop will be. Now is the time… we cannot wait any longer… If we want a successful harvest, we must act today. Rock the boat! Shake the baobab tree! Do the unusual,” says Mboweni.
Mboweni says government needs to deal with the public sector wage bill. He says no less than 29 000 civil servants earn more than R1 million per year.
Mboweni has also told Parliament that Treasury has revised down the country’s GDP growth from 1,5% budget to 0,5% for 2019. This is mainly due weaker total investment, exports and global growth.
Growth is expected to reach 1, 2% in 2020 and 1, 6% in 2021.