SOUTH AFRICAN BUSINESS LEADERS URGE ‘TOUGH BUDGET’ TO TRIM FAT | AfriTV Online

Lobby group Business Leadership South Africa has listed key reforms it views as necessary to fast-track growth in a letter to Finance Minister Tito Mboweni before his medium-term budget policy statement next week.   In the letter, made public, the orga...

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SOUTH AFRICAN BUSINESS LEADERS URGE ‘TOUGH BUDGET’ TO TRIM FAT

Published by: A. Odean
10/23/2020 01:22 PM

Lobby group Business Leadership South Africa has listed key reforms it views as necessary to fast-track growth in a letter to Finance Minister Tito Mboweni before his medium-term budget policy statement next week.

 

In the letter, made public, the organization calls for tougher measures to achieve fiscal sustainability. Mboweni should outline how he will trim fat in the form of tighter management of the public-sector wage bill and focus on revenue-collection efficiency, Business Leadership South Africa said. It’s time to set out how state-owned companies will be weaned off subsidies and bailouts, it said.

 

Expenditure on the compensation budget must fall toward 10.5% of gross domestic product from 14.2% this fiscal year,” the group said. “Business wants to hear some detail at the medium-term budget policy statement to reduce doubt and aid planning for the year ahead in such uncertain times.”

 

President Cyril Ramaphosa unveiled a recovery plan just over a week ago intended to help lift the economy out of recession and reduce high unemployment levels, while committing to tackling corruption. The government targets average growth of 3% over the next decade and plans for energy security to be restored in two years.

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