Gigaba convenes budget Lekgotla to address ailing economy

S&P Global downgraded the country's local currency rating to junk status on Friday, effectively putting the country into sub-investment grade.

FILE: Finance Minister Malusi Gigaba. Picture: EWN

JOHANNESBURG - Finance Minister Malusi Gigaba has convened a budget council Lekgotla to discuss the ratings downgrades and their implications.

S&P Global downgraded the country's local currency rating to junk status on Friday, effectively putting the country into a sub-investment grade.

Minister Gigaba says there needs to be a coordinated approach towards inclusive economic growth.

He says the Lekgotla will also discuss revenue collection after the budget deficit of more than R50 billion.

But Stanlib economist Kevin Lings says the government needs to cut expenditure.

“It’s going to take more than just a statement of intent, we're going to have to show a clear move towards fiscal reform.”

Gigaba says government counterparts need to learn from each other to coordinate their policies to limit spending and boost growth.