'Budget shows we are heading in the right direction': Ramaphosa

CAPE TOWN - President Cyril Ramaphosa says the 2024 budget tabled by Finance Minister Enoch Godongwana last week shows that the government is following through on economic reforms and getting public finances in shape, while still providing basic services for the poor.

Writing in his weekly newsletter, Ramaphosa says better years lie ahead as the new budget will help government to achieve more rapid and inclusive economic growth while supporting developmental goals.

He says the macroeconomic environment is stable enough to encourage investment and public employment, and social protection has been expanded to create jobs and an income for the unemployed.

Ramaphosa says his administration has been working hard to reverse the decade-long low economic growth and rising debt worsened by state capture.

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He says over the last five years, far-reaching reforms in the energy, logistics, water and telecommunications sectors have been introduced to address the binding constraints on growth.

The budget tabled by the minister takes the country further down the path of reviving the economy and rebuilding institutions, he added.

The president points out government is spending more on interest payments on its debt than it does on education or healthcare.

By reducing debt, Ramaphosa says there will be more money to spend on infrastructure development such as improving schools and hospitals.

The budget allocates additional funds for salaries for police officers, teachers, nurses and doctors.

R7.4 billion will go towards creating more jobs through the Presidential Employment Stimulus.

Ramaphosa added that a R2 billion grant for the rollout of electricity smart meters will also help reduce load shedding.