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Thursday, July 2, 2009
From Creamer Media in Johannesburg, I'm Amy Witherden.
Making headlines:
South Africa's low debt-to-gross domestic product ratio means that government can maintain its present spending levels and increase its borrowings, said Finance Minister Pravin Gordhan in the debate on the Treasury's budget vote yesterday. However, a lower tax revenue intake, together with higher interest costs, will force government to "moderate" its spending growth when compared with the previous seven years.
Currently, the government is approximately R19-billion below its benchmark target for revenue. If this trend continues, Gordhan says that government may be from R50-billion to R60-billion below its target by the end of the year.
Gordhan stresses, however, that government has chosen to maintain an expansionary Budget, arguing that "reducing its spending level now, will add to the weakness in the economy".
The world's rich nations must not allow the global downturn to distract them from their commitment to help Africa stem the spread of HIV/Aids, says Michel Sidibe, executive director of the United Nations Joint Programme on HIV/Aids.
Sidibe says he is worried that money earmarked for fighting HIV/Aids in Africa at a Group of Eight summit four years ago, could be diverted, as governments focus on reviving their own economies. The African continent is worst affected by HIV/Aids.
World leaders have the political obligation to fix the economy, Sidibe said, but they have also the moral obligation not to abandon those people needing antiretroviral treatment, as well as 14-million HIV/Aids orphans.
The African Development Bank has boosted its support for trade finance on the continent by committing $500-million to a vehicle set up to underpin credit markets damaged by the global financial crisis.
The money will be paid into a Global Trade Liquidity Programme, helping increase the share of GTLP resources targeted towards Africa. This will facilitate Africa's exports and imports at a time when the global financial crisis is cutting off critical funding.
GTLP resources for Africa are expected to total $15-billion, supporting African economies and limiting job losses.
Also making headlines:
The Congress of South African Trade Unions criticises countries that have made trade agreements outside the Southern African Customs Union.
The World Wildlife Fund says that South Africa's emission reduction plan lacks action.
The South African Chamber of Commerce and Industry says that the country's deteriorating economic conditions are likely to continue.
And, the European Union says that peacekeepers in Somalia need more power to deal with insurgents.
That's a roundup of news making headlines today.
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