A seasoned commentator and business executive Dr Hlengani Mathebula said the country was still in significant socio-economic distress and that if nothing is done, the bleak fiscal outlook could worsen
Dr Mathebula was reflecting on the Medium Term Budget Policy Statement (MTBPS) during the University of Limpopo’s (UL) public lecture organised by its business school – Turfloop Graduate School of Leadership (TGSL). The MTBPS was delivered recently by Finance Minister Enoch Godongwana.
Dr Mathebula said that the government’s largesse probably won’t last much longer, since the Treasury has lowered its growth forecast and commodity prices have probably reached their peak.
“Treasury revised its growth forecasts downwards, which is the effect of sustained load-shedding on economic activity,” he stated, adding that the government extended the social relief of distress grant by another year, until March 2024, which will bring relief for many South Africans, given that years of slow growth, together with the fallout from the Covid-19 pandemic and cost-of-living increases, have exacerbated already unacceptable rates of unemployment and poverty.
He underlined that a large part of the revenue windfall will be used to increase spending on infrastructure, which should be welcomed because these investments have the potential to make inroads into service delivery backlogs.
“High investment will also help achieve a high rate of economic growth: low and volatile public and private investment help explain South Africa’s low average economic growth from 2009 onwards,” said Dr Mathebula.
The lecture culminated in a panel discussion, during which Senior Lecturer in Public Administration at UL, Dr Richard Chauke, stated that the budget delivered was about the future, “meaning it calls upon all of us to continue to reflect on it and not to forget it. I have realised that so many things get said but so few get done,” said Chauke.
Another discussant was President of Limpopo Chamber of Business, Albert Jeleni, who added that, the budget speech presented by Finance Minister was more artistic or cosmetic, meaning (how do we want to be seen by the world or the voters).
“For business point of view, is good because the investors would want to invest in our country. SA need to forge ahead with is issues of redressing the black economic empowerment,” he said remembering that SA has lost number one position in Africa in terms of preferred country to be invested into.
According to Acting Director for TGSL, Prof Sipho Mokoena, the School remains a competent trainer of executives and senior administrators. He said the lecture was intended to shed light on public administration and good governance. “In that way, we remain responsive to the economic cluster, and also, leaders are expected to be acquitted with the status of finances as government priorities are being taken into consideration,” he explained.
By Malatji Monyelegwete