‘There will be no changes to govt’s financial policies’
The new finance minister today briefed the media about his immediate and long-term plans.
JOHANNESBURG - New Finance Minister Pravin Gordhan has moved to assure South Africans and international investors that there will be no changes to government's financial policies.
After a chaotic five days and a crash of the markets, Gordhan was last night brought back into the key portfolio.
Today, as the markets recover, Gordhan briefed the media about his immediate and long-term plans.
He says it's all about staying with a sound fiscal policy.
"We are very aware that confidence and trust doesn't get handed to one on a platter. It is something that one has to earn and something that one has to sustain over a period of time."
Gordhan says government will restore confidence in the country's economy by "doing the right things".
"Our focus in the coming months will be to do the following, among other things, diligently: We will stay the course of sound fiscal management, we can have extra expenditure only if we raise extra revenue."
#PravinGordhan reiterates "we will only spend the money we have." SAys SA can't afford to spend money it doesn't have.
- EWN Reporter (@ewnreporter) December 14, 2015
He says government is "acutely aware" of the damage that has been done.
"As President Jacob Zuma indicated when a decision triggers development such as we say last week, a democratic government has a duty to listen and respond appropriately."
'WE WON'T BE BULLIED'
Gordhan says the treasury won't be bullied by state-owned enterprises.
Gordhan returns to the portfolio in which he has 20 years' experience.
He has also issued a warning that the treasury will not abandon cost-cutting reforms at state-owned enterprises and that South Africa has taken note of comments from international rating agencies.
Gordhan faced questions about controversial deals struck by South African Airways (SAA) and the future of the country's nuclear project.
WATCH: New finance minister allays fears over SA's economy