Mini budget - as it happened

2014-10-22 16:03

Finance Minister Nhlanhla Nene’s comprehensive package of measures will reassure conservatives that he acknowledges the need for prudence on government’s side. (pic: Leanne Stander, Photo24)

South African Finance Minister Nhlanhla Nene. (Pic
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Last Updated at 10:56
22 Oct 16:44

22 Oct 16:36

Some of the measures from government to rein spending include:

- A freeze on budgets of non-essential goods and services at current levels; 

- Withdrawing of funding for posts that have been vacant in the civil service for some time; and

- Reducing the rate of growth of transfers to public entities, particularly those with cash reserves.

Across national departments planned expenditure on travel and subsistence, conference venues and catering has been cut, Nene said.

Advertising and communications budgets have also been reduced and consultant services been capped. Altogether these steps will contribute savings of about R1.3bn over the next two years.


22 Oct 16:13
Nene: We are also looking at the broader financial health of Eskom.

22 Oct 16:13
Nene: It is time we accept that we need to move towards a cost reflective tariff from Eskom.

22 Oct 16:12
Nene: A change in tax policy is not taken lightly, but there will be a number of areas to look at to enhance revenue.

22 Oct 16:12
Nene: If we do not reduce our spending and enhance revenue collection you cannot reduce deficit.

22 Oct 16:12
Nene: Small business development interventions focused on growing this sector - you have an accommodating environment to allow the small business sector to do more.

22 Oct 16:11
Nene: The NDP has now been translated into the mini budget and all government departments have aligned their budgets to the NDP and they will be measured accordingly.

22 Oct 16:11
Nene: Private sector must also lead in some areas, while government continues to protect the poor and those cuts are not touched.

22 Oct 16:10
Nene: SA economy contracted at beginning of the year due to long protracted mining strike and other administrative challenges.

22 Oct 16:06
Finance Minister Nhlanhla Nene now live on eNCA: SA had to look at what the reality is regarding economic growth. There is a lot of vulnerability for SA as a small economy.

22 Oct 16:03

22 Oct 16:03
Ordinary South Africans seem pleased with Nhlanhla Nene.

22 Oct 16:02

22 Oct 16:00

22 Oct 15:59

22 Oct 15:54
Craig Polkinghorne, Head of Commercial Banking at Standard Bank, discusses Finance Minister Nhlanhla Nene's first mini budget speech:

22 Oct 15:50
Watch Fin24's in studio interview with Kay Walsh, Deloitte Executive Lead in Economics.

22 Oct 15:33

22 Oct 15:32
Nazrien Kader looks at Finance Minister Nhlanhla Nene medium term budget speech from a tax perspective:

22 Oct 15:29

22 Oct 15:28
Economist Iraj Abedian: We have to address accountability of government.

22 Oct 15:26
Kasongo: Increasing tax is not an option in my view to look for more revenue. And if we increase VAT that is maybe not the best idea either. Also, taxing the rich is that going to generate the money we need? We do not want to increase our taxes so much that we head into a recession.

22 Oct 15:26
Abedian: Jobs are not created in a vacuum – it only comes about if there is an enterprise. How do we create a million enterprises in various sectors – even if each employ 2 people that would mean 2 million more employed people. But if government wants to create jobs they must make it easier for business.

22 Oct 15:25

22 Oct 15:25
Economist Iraj Abedian: We talk about unemployment, but a lot of the unemployed are also unemployable – how do we explain the situation with massive unemployment and look at all the job opportunities advertised each week – that tells me our education system is out of sync.

22 Oct 15:24
Kasongo: We must make sure we have quality education. Do we have the willingness? Are we teaching our students the willingness to be in the labour market.

22 Oct 15:24
Economist Atoko Kasongo of UWC: We have a very high unemployment, therefore, to create more jobs we need more investors, but for that we need to stabilise the wage bill.

22 Oct 15:24
Nhlanhla Khubisa, Secretary General of the National Freedom Party: Job creation must be an issue. Ensure that we encourage business to invest especially in rural areas. That is still lacking.

22 Oct 15:23
Prof Jannie Rossouw (economist) Head of School: School of Economic and Business Sciences, Wits University:  I have noticed that the budget for civil service remuneration has been adjusted, but not sufficiently to allow for the employment numbers in the civil service to grow at the same rate (3.1 per cent per annum) as since 2008.  Going forward to 2017/18, the budgeted figures give the impression that employment growth in the civil service will be curtailed, which is to be welcomed.  These figures also show that government is clearly not agreeing to trade unions’ demands for an increase of 15% in civil service remuneration.  This is also to be welcomed, as South Africa cannot afford increases of that size in its civil service remuneration account. The budgeted increases in remuneration in the period to 2017/18 gives a clear impression of tax increases, as these growth rates (9.7% in 2015/16; 10% in 2016/17 and 8,4% in 2017/18) can clearly not be achieved only from inflationary increases and economic growth.

22 Oct 15:21
 Khubisa: Nothing has been done to transform the mining industry. There is no political will.

22 Oct 15:21
 Khubisa: Something tangible must be done to ensure the right people must be employed to do the jobs, even in rural areas.

22 Oct 15:21
Nhlanhla Khubisa is the Secretary General of the National Freedom Party: Corrupt officials must be arrested and not just migrated to other departments.

22 Oct 15:20
Creamer: The state’s role is to drive infrastructure programmes and expand access to services so as to open up new economic opportunities and change the economy’s inherited racialised patterns.  The private sector’s role, both big business and small, is to thrive in the space created as the economy’s opportunities expand, to deploy new know-how and technologies and to operate efficiently and competitively in such a way as to benefit consumers, employees and, ultimately, the fiscus.

22 Oct 15:19
Kenneth Creamer, Economist at Wits University: A central problem that needs be overcome is that government’s fiscal stimulus and infrastructure-led programme has failed sufficiently to stimulate, or crowd-in, private sector investment in the manner envisaged when the policies were first implemented.    State-led economic transformation does not imply that the state can go it alone in driving development.  Rather, successful state-led investment must serve as a catalyst for increased levels of private sector investment.

22 Oct 15:18
Economist Atoko Kasongo: SA pumps money into state owned entities but we do now see what happens to it.

22 Oct 15:18
Economist Iraj Abedian: The NDP is not yet nationally supported. We need to work on investor confidence. Investors are taking the same type of thing into account. The past 6 years the confidence in the investor community has pretty much dwindled. They want to see if the government can deliver on what it promised.

22 Oct 15:18

22 Oct 15:16
Buthelezi: There is more than enough money when you count in the money stolen, misspent etc. How can you be hopefull when so much money is wasted.

22 Oct 15:16
Buthelezi: Even our own people won’t invest in SA under these conditions. They will take their money elsewhere.

22 Oct 15:15
Buthelezi: I have been in parliament since 1994. Investors want to be sure their investments are safe. How can they when the unions dictate in a Tower of Babylon type of situation.

22 Oct 15:15
Mangosuthu Buthelezi IFP: I find it worrying that countries like Mozambique are doing better, but SA is not.

22 Oct 15:10
Economist Iraj Abedian: The issue is not privatisation or nationalisation – the national grid, which at the moment is controlled by Eskom, is a national entity – but one could privatise energy supply by creating a market to provide energy through the national grid. Transnet has a monopoly on rail and ports – we can keep them and bring some privatisation.  Look at what is the best framework in each case.

22 Oct 15:09
Deloitte macro economist Kay Walsh was impressed with Finance Minister Nhlanhla Nene's maiden mini budget speech, because she said Treasury was at last facing up to the realities of poor economic growth. Watch her full video interview shortly.

22 Oct 15:09
 Shivambu: Transnet and Acsa are not in the red. State owned enterprises should be utilised for development on the ground and not just enrichment of those in control.

22 Oct 15:08

22 Oct 15:08

22 Oct 15:08

22 Oct 15:07
Shivambu: Nene says they will continue privatisation programme to balance debt – but the reality is that the poor will suffer because jobs will be the first casualty when there are privatisations.

22 Oct 15:07
Shivambu: ANC continues to be stubborn on the wrong plan.

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