Godongwana's MTBPS gets mixed reaction, some welcome stance on govt spending

The Democratic Alliance (DA) said that Minister Gongwana fell far short of key expectations to shore up the economy and accelerate the post-pandemic economic recovery.

FILE: Finance Minister Enoch Godongwana delivers his maiden Medium-term Budget Policy Statement in Parliament on 11 November 2021. Image: GCIS.

CAPE TOWN - Finance Minister Enoch Godongwana’s Medium-term Budget Policy Statement (MTBPS) has received mixed reaction, with some opposition parties welcoming his stance on government spending.

Tabling his statement, Godongwana said that consolidated government spending was expected to increase over three years.

But he announced no additional funding for SOEs, a move welcomed by parties.

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The Democratic Alliance (DA) said that Minister Gongwana fell far short of key expectations to shore up the economy and accelerate the post-pandemic economic recovery.

But DA finance spokesperson, Dion George, said that the party was happy that Godongwana decided to use a revenue overrun stemming from running commodities prices to address the deficit.

"We are welcoming the fact that he’s talking about applying the revenue overrun towards reducing debts and also towards reducing the plight of poverty with that money, so we do support that but we don’t think that it's going far enough especially because the economy isn’t growing," George said.

FF Plus MP Wouter Wessels said that Godongwana made the correct noises, but questioned whether the policies would be implementable.

"He identified the problem and the crisis but is it implementable and the problem is that we have policy uncertainty in South Africa that is hindering economic growth," Wessels said.

Union federation Cosatu said that it was disappointed by what it called a "tepid" budget which provided few new ideas or interventions to grow the economy.

WATCH: Godongwana: SOCs have been badly managed, no additional funding in latest budget