MTBPS: Minister Godongwana Defends Treasury's Growth Stance Amid Widespread Criticism

• Minister Godongwana is facing backlash over the contentious Medium Term Budget Policy Statement, sparking a national debate
• Despite criticism, Godongwana stands firm on the treasury's economic growth strategy, emphasising South Africa's unique challenges
• South Africans express discontent with the budget speech, voicing concerns about poverty, inequality, and economic recovery

CAPE TOWN - Finance Minister Enoch Godongwana's Medium Term Budget Policy Statement (MTBPS) has been the centre of discussion among commentators and political parties, with many saying the tabled fixes are bound to do more harm than good.

According to the Mail & Guardian, despite the widespread backlash, Godongwana has maintained the treasury's stance on economic growth in the country.

Godongwana highlighted that most countries recovered after the 2008 global financial crisis, but South Africa did not.

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Godongwana explains treasury's stance on salvaging the economy

Godongwana said:

“There is a core relation, in my view, between that period and electricity outages, and that has had an impact on growth levels. Whatever macroeconomic policy you can pursue, in the absence of electricity, logistics, crime, and state capacity, you’re doomed.”

Godongwana's stance on the country's much-needed growth left a bitter taste in the mouths of commentators, who believe that the country's economic crisis will not be solved by fixing supply challenges or by boosting consumer demand by increasing government spending.

South Africans join in on rejection of the budget speech

South Africans had a lot of suggestions to table in the budget speech. Commenting on a post by eNCA on X, this is what they had to say:

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@charmu14 posed the question:

"If a bleak picture has been painted, why are we then proposing to write off the debt owed to Eskom by municipalities? Make this make sense."

@SydneyMahala1 remarked:

"It depicts a gloomy picture of the country's capitalist economy being trashed by the ANC. We witness the continued poverty and inequality, whilst its leaders and politically connected individuals are billionaires and millionaires. The so-called freedom has been good to them."

@LouisChanguion made the suggestion:

"SA is heading for tougher times, whilst the corrupt practices continue in government structures and SOEs. Our taxpayers will not be able to keep the sinking economy afloat much longer. The government must cut expenses drastically and reduce the size of its duplicated structures."

@AurigenZA had this to say:

"This government has now given the final blow to the middle class that has supported this country in times of need. Higher taxes are not a means for recovery, it is a deterrent for investment and a burden on the already shrinking taxpayer base. Poor governance is the problem."

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EFF slams Finance Minister Godongwana's 'irrational' budget cuts in MTBPS

@_Paula_Cri said:

"No plans to stimulate the economy, very little budget to keep SA afloat. The poor will become poorer until they adopt policies to drive the economy."

@nj_raborifi commented:

"Townships and informal settlements will continue not paying for electricity. Those who pay will pay on their behalf through taxes. It's a tradeoff to vote anc. We continue buying votes with the R350 paid by taxpayers."

ActionSA lashes out at Godongwana over the MTBPS

In a previous report by Briefly News, ActionSA President Herman Mashaba lambasted the mid-term budget speech, saying Godongwana failed to address the main economic ailments faced by South Africans.

Mashaba said Godongwana's speech made it clear that the ANC does not have a concrete plan to create more jobs and to get the country out of its current financial crisis. Mashaba also added that the speech should have focused more on economic growth, the mismanagement of public funds, and the looting of public coffers.

Source: Briefly News