‘Inclusive growth plan to help restore confidence in SA economy'

Minister Malusi Gigaba told delegates at the Tax Indaba that economic growth is a priority to boost tax revenue.

FILE: Finance Minister Malusi Gigaba. Picture: EWN.

JOHANNESBURG - Finance Minister Malusi Gigaba says government's inclusive growth plan will help restore confidence in South Africa's economy in the short term.

Gigaba announced on Monday that he will deliver his inaugural medium-term budget policy statement in October.

It’s a report providing information on the country's economic context, fiscal objectives and spending priorities over a three-year period.

During his opening address at the Tax Indaba in Sandton on Monday morning, Gigaba told delegates that economic growth is a priority to boost tax revenue.

“Government has introduced the inclusive growth action plan to respond to sustaining momentum on the nine-point plan for growth and employment. The action plan is a coordinated effort by government to restore confidence in the short term and lay a stronger foundation for economic growth.”

The Minister is warning South Africa is in danger of missing its 1.3% growth target this year due to the poor performance of major sectors of the economy that will likely restrain tax revenues.

Government aims to collect just under R1.3 trillion in taxes during the 2017/2018 fiscal year.

But Gigaba says the current level of growth is simply insufficient.

Earlier Gigaba said while South Africans are celebrating GDP growth and the country's emergence from a technical recession, this is not the time to be complacent, adding that every effort must be made to grow the economy and get more people working.

(Edited by Winnie Theletsane)