Data provided by iNet BFA
Loading...
See More

Curb state spending, urges body

Feb 11 2013 19:19 Sapa

Related Articles

Busa wants speedy implementation of NDP

Busa calls for business-friendly policies

Busa optimistic about Manaung decisions

Busa: Mangaung crucial for SA economy

Busa seeks stronger budget message

Brics summit unites Busa, BBC

 

Johannesburg - South Africa must avoid debt service costs and government wages absorbing too much of government resources, Business Unity SA (Busa) said on Monday.

"Like tax-and-spend, borrow-and-spend also has its limits," Busa special policy adviser Raymond Parsons told reporters in Johannesburg.

"We want to see these limits in the budget."

Parsons was briefing reporters on what Busa would like to see in Finance Minister Pravin Gordhan's budget speech, which will be delivered in Parliament later this month.

Busa supported the conservative approach to state spending, but remained concerned by the public sector wage bill. There needed to be a balance between consumption and investment spending by the state.

Improving state capacity and mobilising the private sector capacity was essential to maximise impact.

"We need to make sure we are spending on the right things and getting value for money," said Parsons.

The fiscal stance had to remain in line with the messages given in last year's budget speech and the mini-budget to strengthen business and investor confidence.

South Africa needed to enhance certainty and predictability in fiscal policy.

Parsons said the budget speech had to take a business-friendly approach.

It also needed to be aligned with the National Development Plan and with growing the economy.

The budget had to provide the limits that the country's debt to gross domestic product (GDP) ratio of fiscal deficit should not exceed.

"South Africa's headline fiscal ratios may appear safe, but this can mask vulnerabilities - margin for error in an uncertain world is great," he said.

Gordhan needed to give South Africans a lesson in economics to remind South Africans that financial resources were finite. South Africa did not want to become a tax-and-spend economy.

"This is the bane of many other countries," said Parsons. The gap between talk and action needed to be narrowed.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

busa  |  sona  |  economy
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
9 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Investing in shares is a marathon

When investment guru Warren Buffet was 11, he bought his first shares and today he reckons that he started too late.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...