The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

SACCI agrees with the view that creating jobs, reducing poverty, building infrastructure and expanding our economy should be the primary focus to support sustainable economic development. We read this to imply that shared long term goals and objectives and well sequenced reforms are more likely to succeed than short term populist interventions

We welcome:
• The commitment to a shift away from (temporary) poverty alleviation (as supposed to poverty reduction) measures that continue to foster dependency in favour of supporting economic activity that contributes to employment creation and poverty eradication on a sustainable basis
• The announcement of pro-growth and pro-business infrastructure development to create an enabling business environment for higher GDP growth, although care should be taken not to let the higher levels of public debt result in higher costs and user fees
• Implementation of job creation initiatives under the jobs fund
• The principle of competitiveness support and the allocation of R25 billion in this regard
• Some direction on the implementation of the National Health Insurance Scheme (NHI) as well as increased spending on improving medical facilities

We would have liked to see more on:
• Support for SMEs as the obvious drivers of economic growth. It was mentioned but was by no means a major theme
• The regulatory and administrative reforms to facilitate small business development
• Although we welcome the further incentives for industrial development zones (IDZs), we are concerned about their current effectiveness
• A shift in expenditure priorities towards local government

We are concerned about
• The rapid rise in the public sector wage bill in the context of high public sector vacancies and poor delivery
• Although we welcome the public sector infrastructure spending, we remain concerned about the financing mechanisms for such spending
• The R266 million gratuity paid to outgoing councillors

Despite the increased pressure on the fiscus and higher debt levels, SACCI lauds the National Treasury on continuing to underpin the budget with fiscal discipline. We expected higher debt and deficit levels, and welcome the counter-cyclical fiscal policy approach.