Cabinet urges financial caution

2011-08-11 11:34

Cape Town - The cabinet has urged South Africans and businesses to exercise caution and responsibility in the management of finances, in view of current world economic events.

“Cabinet would like to reassure South Africans on our financial austerity measures, especially in light of the plunge by global markets in the recent week,” spokesperson Jimmy Manyi told a media briefing following cabinet’s regular fortnightly meeting on Wednesday.

Even before the 2008 financial crisis, South Africa had taken the necessary measures to ensure the soundness and stability of its financial system and fiscal accounts, he said.

This had enabled the country to weather the crisis when it hit. As a result, South Africa was one of the first countries in the world to register positive growth post the recession.

Economic growth accelerated to over 3% and the growth forecast for this year was 3.4%, he said.

“South Africa is monitoring the current global situation together with other G20 countries and stands ready to take action should the need arise.”

While acknowledging that recent developments posed risks to global and domestic growth, it was too early to predict the effect of current events on confidence and growth.

The National Treasury will publish growth forecasts in October, when it releases the medium-term budget policy statement, Manyi said.

Finance Minister Pravin Gordhan is expected to expand on the issue later on Thursday morning.

  • Bart Zimzon - 2011-08-11 11:41

    Here comes trouble........... and who believes Jimmy? (--->here comes Jimmyyyyyyyy !!!)

  • levit8 - 2011-08-11 11:49

    This from the same cabinet that is approving increases in taxation, the Gauteng toll fees, and will approve an NHI scheme that will further increase the tax burden on business and citizens.

  • The_Realist - 2011-08-11 12:04

    why does the ayencee not practice what they preach?!?! (NHI to cost R125bn by next year)

  • JOHN - 2011-08-11 12:16

    What a laugh, asking business to be cautious while they promote nationalizing of mines which is doing more damage.

  • Met - 2011-08-11 12:18

    I had to pinch myself to make sure that I was not dreaming.This is more laughable than their call to SAs not to visit the UK because of the riots. Do they even believe themselves? No commitment from them to steal less?

  • legens - 2011-08-11 12:26

    What`s this ... the pot calling the kettle black ? why don`t you pay another dictator some more of my tax money , you incompetent corrupt lot.

  • JOHN - 2011-08-11 12:26

    What a laugh, urging business to exercise caution while they promote nationalization of mines.The Rand has fallen sharply against all major currencies not only the Dollar is that not a bigger concern?

  • kenneth.roselt - 2011-08-11 12:28

    Isn't this a contradiction after toll fees were approved...

  • clark - 2011-08-11 12:30

    - Look who's talking. Billions wasted through wasteful expenditure and corruption and they have the gall to say this. Yet they see fit to introduce toll fees and an NHI next year. They simply have no clue.

  • Met - 2011-08-11 12:40

    I thought that I was dreaming. This is funnier than their call to SAs to avoid the UK because of the riots.Will they steal less?

  • B2187 - 2011-08-11 12:40

    I would like to urge the Cabinet to financial caution! Don't worrie about the business men, they will look after them selves.

  • Zeus11 - 2011-08-11 12:54

    "Cabinet would like to reassure South Africans on our financial austerity measures, especially in light of the plunge by global markets in the recent week," With the current tender process in shambles, how is it that government can they are cautious...

  • g t - 2011-08-11 13:09

    Is this an April Fool's joke?? This motley government advising US about fiscal responsibility????

  • TotalSceptic - 2011-08-11 14:13

    What a tosser, lets add toll roads and NHI to the poor bastards taxx burdens, srike every 5 minutes for unreasonable above inflation are business people meant to stay open....DICK!!

  • dave_23 - 2011-08-11 14:32

    And yet all the goodwill generated from the improved fiscal management (andm ore) will disappear in one puff of smoke from either the NHI or nationalisation, let alone both, which will destroy this opportunity to become a safe haven for investors during difficult global economic times.

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