Gordhan talks tough on steering SA's fiscal ship

Cape Town – When there is global turbulence and political turbulence in South Africa it is important to keep the fiscal ship as steady as possible, said Finance Minister Pravin Gordhan on Wednesday in Parliament.

Wrapping up a debate about National Treasury’s Fiscal Framework and Revenue Proposals, Gordhan said the “political breezes” in South Africa sometimes becomes “gale-force winds”.

“But we have a choice – do we make negative noises, or do we work across party lines and try to meet the demands in our society?”

Gordhan said South Africans need consensus on how to grow the economy and create the conditions for the private sector and the state to become a key investor in the economy.

“I recommend that we have a serious conversation of what will work in South Africa, taken into account our history - which is a very divisive one - and understand our current context, our limits and opportunities.”

Tax talk

On the issue of tax administration and the strengthening of regulations to improve revenue collection, Gordhan repeated a previous call not to “personalise” issues.

Previously, Gordhan told members of the standing committee on finance that it should not be made into a Gordhan/Moyane issue, referring to SARS commissioner Tom Moyane.

“The simple issue is the head of an entity is accountable to the minister. We need that kind of ability.”

Moving onto the issue of debt, Gordhan said to the DA’s David Maynier, who had earlier expressed concern about South Africa’s net debt, that having debt is a “normal thing”.

“South Africa has the ability and the willingness to repay its debt. No one doubts that. We should be careful not to make debt a bogey. Very few countries can survive without debt.”

Battering people

On the issue of “low” corporate income tax that was mentioned by the ANC’s Yunus Carrim and also by the EFF’s Floyd Shivambu, Gordhan said South Africa will not see private investment if government keeps on battering people.

“Someone must make a profit. There must be confidence in our policy environment and we must have national consensus that generates optimism in our country.”

Gordhan said economic transformation in South Africa should be directed at the vast majority – the working class and the poor.

“It’s nice to have millionaires and billionaires, but what about our own people who find themselves in despair. How do we address their concerns?”

He said inter-generational poverty in South Africa must end with the current generation.

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