Mantashe welcomes Gordhan’s Budget speech

He says the finance minister allocated resources to sectors that the ruling party prioritised.

FILE: African National Congress Secretary General Gwede Mantashe. Picture: Reinart Toerien/EWN.

JOHANNESBURG - African National Congress (ANC) Secretary General Gwede Mantashe has welcomed Finance Minister Pravin Gordhan's budget speech saying it will crystallise the plans identified at the party's Lekgotla.

He says Gordhan has allocated resources to sectors the ruling party has prioritised, particularly to state-owned entities in the red.

Gordhan announced this afternoon that taxes are being increased for the wealthy, while middle and lower-income earners will pay less.

Mantashe says the possible merger of the South African Airways(SAA) and South African Express with a minority investor will take the pressure off of government.

"We'll get a minority investor into that space. That means you recapitalise that space so that it doesn't depend on government support and government guarantees."

But he says SAA needs a new and competent board.

"When we merge the two, we must make ensure that we appoint a competent board and that is what the ANC agreed on. Governance in state-owned companies is a major issue."