Business Unity's Sipho Pityana says Mboweni budget's too little, too late

Business Unity's Sipho Pityana says Mboweni budget's too little, too late

- Pityana praised Mboweni's honest account of South Africa's economic situation, but said the speech was not bold enough

- He said Mboweni's proposals would not do enough to turn around the economy

- Additionally, he said it would not reduce the economic damage being done by failing parastatals

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Business Unity's Sipho Pityana says Tito Mboweni's budget proposals have be too little, too late.

Pityana said the finance minister's plans did not go far enough to prevent state-owned enterprises from draining the public purse.

He also did not enough was being done to rehabilitate the economy.

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Pityana shared these comments in a public statement. He praised some aspect's of Mboweni's speech, including what he saw as an honest description of the challenges South Africa faces, according to fin24.

However, he said Mboweni's plans were not enough to solve South Africa's economic woes.

For example, Pityana said the speech lacked adequate plans to reduce the amount government's spends on the wages of public servants and state debts more generallly.

Additionally, in his view, Mboweni's agenda will not do enough to revitalise the economy, which is expected to have grown by less than 1% in the last year.

On top of this, Pityana criticised the speech for not eliminating policy uncertainty. Policy uncertainty is generally viewed as a major impediment to foreign investment.

READ ALSO: Economist claims Zuma's 2nd term cost SA R470 billion

Piytana main criticism was reserved for parastalas like Eskom, which he says are "ailing" and deal a major blow to the economy. Eskom is currently struggling with roughly R470 billion in debt, and is threatening to collapse.

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Source: Briefly.co.za

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