Maile warns if Gauteng's economy doesn't do well, national govt will fail to meet its growth targets
Earlier on Wednesday, the provincial finance department hosted a post-budget breakfast in Johannesburg where it interacted with business and other related stakeholders.
FILE: Gauteng Finance MEC Lebogang Maile. Picture: Thandoluhle Ngcobo/EWN
JOHANNESBURG - The Gauteng government has warned that if the provincial economy does not do well, national government will fail to meet its growth targets.
This comes after the province received reduced funding from the Treasury, leading to cuts in infrastructure budgets.
On Wednesday, the provincial finance department hosted a post-budget breakfast in Johannesburg where it interacted with business and other related stakeholders.
In his recent budget speech, Finance Minister Enoch Godongwana forecasted the South African economy to grow by at least 1.9% by 2027.
Gauteng Finance MEC Lebogang Maile said that for that to happen, the country's economic hub must thrive.
"One of the things we are serious about is the rebuilding of the economy. The president has spoken about a 3% target for growth. Our economy in Gauteng is estimated to grow by about 2% next year or so, if Gauteng can't grow at 3%, there is no way national will get to 3%."
Maile said such economic growth could be achieved mainly through investing in the province’s infrastructure development.
The budget tabled before the legislature on Tuesday shows the Gauteng government has set aside R5.5 billion for new infrastructure in the next financial year.