Finance Minister Enoch Godongwana’s budget statement he tabled in the National Assembly recently was an effort to strike a balance between reducing South Africa’s budget deficit, while responding to the challenges faced by citizens at the same time, President Cyril Ramaphosa said on Monday.
Speaking when he addressed the nation in his weekly letter, Ramaphosa said at a time when the country faced “a severe fiscal situation, the budget directs resources to areas of greatest potential for growth and jobs — while supporting young people through public and social employment programmes, and extending social protection for the most vulnerable.”
The president said his government was embarking on economic reforms to ensure the country had enough electricity and water, and that sea ports and railway lines were more efficient for the country to attract skills and investment.
“At the same time, in seeking to leave no one behind, the budget has extended social relief to the unemployed and put additional money into the Presidential Employment Stimulus (PES) aimed at providing more work and livelihood opportunities for citizens,” he said.
While unemployment remained at an all-time high, Ramaphosa said the government had extended the PES, which has provided work and livelihood opportunities to more than 800,000 people in its first 16 months.
“An additional US$1.23 billion has been allocated over the next two years so the stimulus can continue to provide vital income, skills development and work experience to hundreds of thousands of unemployed and mostly young people,” he said.
Ramaphosa said his announcement of the extension of the $25 social relief of distress grant for another year was another indication that the finance minister’s budget “seeks to leave no one behind.”
“This will provide basic support for about 10-million unemployed beneficiaries as they look for work. This grant broadens the country’s social safety net, with about 46% of the population receiving grants,” he said.
“Through more efficient use of resources, ending wastage, corruption and shifting spending from consumption to investment, public debt can be reduced,” Ramaphosa said.
He said South Africa’s path to economic recovery after the devastation of the Covid-19 pandemic was “steep and will be extremely challenging.”
However, with the 2021/22 budget presented by Godongwana and co-operation from all stakeholders, the country would succeed, the president said.
NM/as/APA