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Minister Pravin Gordhan could use the Budget tomorrow to reconfirm foreign investor's confidence in South Africa.
The recent economic debates between Cosatu, the SACP and the ANC as well as Mr. Malema's wild statements about nationalizing of mines create uncertainty about the precise economic road the Zuma government will be travelling on. Part of this debate is the role of the Reserve Bank and the setting of inflation targets.
It will take great skill of Mr. Gordhan to, given the restricted funds available, allocate funds to the different priorities of the government, to ensure a "year of action" as was promised. At the same time he has to carefully stimulate the economy in order to ensure some growth from the recession without causing inflation to rise. The proposed electricity tariff increases of Eskom will also have to be taken into consideration.
With all the expectations and money which is being spent on the World Soccer Tournament, the FF Plus is concerned that South Africa could experience an economic hangover following the Soccer World Cup tournament. That is why we welcome the announcement that R846 billion will be made available to improve the infrastructure over the next three years.
The FF Plus would like more detail as to how precisely the subsidy will be used to encourage companies to employ young inexperienced workers while it is also necessary that provision is made for the drought disaster in the Eastern Cape and the flood disaster in the Free State.
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