It’s irresponsible to prepare a Budget without consulting, analysts react
Image: IOL
Political analyst Sandile Swana has criticised the Cabinet for postponing the Budget Speech, calling it irresponsible and indicative of a lack of consultation and years of neglecting other robust ideas.
In response to the sudden postponement of Finance Minister Enoch Godongwana's Budget Speech, Swane criticised the entire Government of National Unity (GNU).
The postponement occurred because the GNU partners could not agree on the budget after GNU parties claimed they were not consulted.
Speaker of Parliament Thoko Didiza announced that the budget will sit on March 12.
“It is bizarre that the executive, the cabinet, can go to Parliament without agreeing on the budget. The critical stakeholders have not been consulted, which is irresponsible and unacceptable.
“It is not like the cabinet is made up of ANC members who, even if they disagreed with Godongwana, would be whipped into toeing the line by their ANC chairperson Gwede Mantashe,” he said, adding that the “mediocracy” that has continued over the years was driven by this idea of not consulting and considering robust ideas.
Business Leadership South Africa (BLSA) expressed disappointment in the GNU, criticising the government for not resolving its differences over the budget.
“It is disappointing and negative for business sentiment. On the other hand, it shows that the parties of the GNU can stand their ground, showing that the GNU is not going to rubber-stamp business as usual.
“It is now critical that the GNU demonstrate that doing so leads to an improved outcome, a budget that they are united behind that delivers for economic growth,” said BLSA CEO Busisiwe Mavuso.
She stressed that the delay shocked the public and investors locally and abroad, and urged the government to work hard to restore investor confidence.
“The fundamental requirements for the budget won’t change between now and March 12. The government must balance its books and ensure that it has the revenue to cover its expenditure. That takes hard choices that won’t go away. Economic growth must be at the forefront of people's minds when making those choices.
“To deliver that, we need to show we are on top of our debt and focusing expenditure on growth-enhancing investment. Only growth can enable sustainable increases in government expenditure.”
Mavuso stated that BLSA hopes the GNU urgently provides a clear way forward that businesses and investors can rely on.
She added that it must demonstrate maturity and acknowledge that trade-offs are inevitable. She argued that there is a path that builds investor confidence and supports growth and that all parties in the government are 100% committed to it.
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