Treasury: We shall stay the course of fiscal consolidation

Treasury says it remains committed to maintaining a tight grip on spending.

Picture: Christa Eybers/EWN.

JOHANNESBURG - Treasury says while it notes some of the responses by ratings agencies to the election results, it remains committed to maintaining a tight grip on spending.

Moody's said last week that increased political competitiveness could lead to new policies which promote economic growth.

But Fitch warned the ANC could implement costly populist policies to try and win back voter confidence in the party.

It also cautioned that political infighting could dampen policy-making processes.

Treasury director general Lungisa Fuzile says, "We shall stay the course of fiscal consolidation. However, in doing so we will always make sure that we continue to protect the core social and economic programmes."