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Look in the mirror

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Finance Minister Pravin Gordhan. (Picture: GCIS)
Finance Minister Pravin Gordhan. (Picture: GCIS)

South Africa should “look in the mirror” rather than just blaming ratings agencies if the country gets downgraded.

This is what Pravin Gordhan, minister of finance, had to say on Thursday during a presentation to a joint sitting of parliament’s portfolio committees on finance.

Gordhan was reacting to a question from an MP as to whether the decisions of credit rating agencies were not impacting on South Africa’s sovereignty.

This came in the wake of announcements by ratings agencies Fitch and Moody’s on Thursday indicating they are still concerned that political risks could compromise the country’s ability to pay back state debt.

But Gordhan told the meeting that South Africa had political and fiscal sovereignty.

“The question is whether, in the way we manage our finances, budgets, expenses and discipline, we are sacrificing our fiscal sovereignty”

According to Gordhan South Africans should look in the mirror more often.

“We should ask ourselves as South Africans and as the governing party if we are doing the right thing.”

Gordhan further said it’s always nice to “blame somebody out there”.

“As a collective we have to take responsibility for our country. They (ratings agencies) can’t force anything on us at the moment, unless we let the fiscal side slide.

“The choice is ours. We have to defend our fiscal sovereignty or we will sacrifice it. That’s one of the simplest choices we have,” Gordhan said.

David Maynier, DA-MP and spokesperson on finances, also wanted to know from Gordhan exactly what the country’s present economic policy was.

According to Maynier, Gordhan created confusion during his budget speech because he announced a policy of inclusive growth while president Jacob Zuma announced a policy of radical economic transformation in his state of the nation address last week.

In response to this, Gordhan said the country’s economic policy was a combination of economic growth, inclusivity and transformation.

“We have a particular history of marginalisation.

“Secondly, we have reached a point where there is intolerance about the various level of need that the majority of the population finds itself in.”

Gordhan said South Africa’s present circumstances demanded that economic policy had to be combined.

According to Gordhan another major issue that has to be addressed is how the benefits of the economy are distributed among all citizens of the country. “That’s where inclusivity comes in.”

 

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