The Treasury had to be a strong institution if it was to meet its socioeconomic mandate, Finance Minister Malusi Gigaba said in Parliament on Tuesday.
The minister also said in his first meeting with members of Parliament’s standing committee on finance that the Treasury would be the "enforcer" across the government in terms of the implementation of the fiscal consolidation that was required by the current environment. The government would have to make do with less resources.
The Treasury would be managing fiscal consolidation in a prudent manner while playing a redistributive role. "In the current situation we are in, we need to be responsible and act conscientiously," Gigaba said.
Gigaba said the Treasury would have to support structural reforms to diversify, grow and transform the ownership patterns of the economy and to broaden the tax base. It would strive to increase revenue so the government could finance its expenditure plans for the year.
Gigaba once again emphasised that accelerated inclusive growth was an the urgent priority. He expressed optimism about SA’s growth prospects and that the economy would continue to grow in 2017, albeit slowly. At the same time the Treasury would be focused on reducing debt-funded consumption.
He reiterated that the Treasury would be working hard with the government’s social partners to avoid another credit ratings downgrade and to restore the previous ratings. Investor confidence had to be boosted to draw in investment and boost growth.
Gigaba noted that the outcome of the French elections had served to calm the markets in rejecting nationalistic populist policies, which would have resulted in greater protectionism and reduced trade, especially with Africa.
Questioned by Democratic Alliance finance spokesman David Maynier whether he had been appointed in order to give his stamp of approval to the nuclear procurement programme, Gigaba said Energy Minister Mmamoloko Kubayi was leading the process. It was not up to Treasury to decide on nuclear procurement. Its role was to ensure that whatever decision was taken was at a scale and a pace that both the economy and the fiscus could afford.
Currently government was bound by the 2010 integrated resource plan until it was reviewed.
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