CAPE TOWN – Getting the economy back on track is one of the essential issues economists say that Finance Minister Tito Mboweni should address in his Budget Speech.
Mboweni is to address the nation in Parliament on Wednesday afternoon, at a time when the noose is tightening around consumers’ necks, unemployment is at dangerously high levels and state-owned-entities are on life-support.
The International Monetary Fund last month stated that South Africa’s economy would this year grow by just 0.8%.
Deputy chairperson of the Gender Equality Commission Dr Nthabiseng Moleko stressed that Finance Minister Tito Mboweni should put his money where his mouth is and give clear plans on how he’s going to stimulate the economy.
“We haven’t seen FDI having the kind of impact that we want it to. We haven’t seen global growth-boosting our export sectors to the levels where you’re starting to see some positives gains on outputs. So we have to stimulate the economy and the question is how is this going to happen and we are expecting the Minister of Finance to give us a clear programme.”
Moleko adds Mboweni should also provide details on industrial policy that drives economic growth.
“Our growth has to be on the back of not debt-led growth but rather industrial policy that drives the real economy. The strategy that the Ministry of Finance released last year doesn’t emphasise sufficiently how macro policy, together with fiscal policy, will underpin labour-intensive growth paths.”
Economists are expecting to get clarity on how government plans to revitalise ailing state-owned entities.