The finance minister says that big-ticket items, including spending R10bn on a state bank, will put pressure on state finances
Finance minister Enoch Godongwana warned ANC leaders that the party’s project wish list could cost R73.5bn, and funding it will require difficult trade-offs.
The government will also have to come up with R19.6bn for increases for state workers, possibly by cutting jobs, and need R4.6bn to forgive unpaid highway tolls in central Gauteng, he said. New projects “will require prioritisation and trade-offs”, Godongwana said. “Our fiscal capacity — as measured by the variation of own tax revenue as a percentage of domestic output — has been deteriorating.”The finance minister also cautioned that the state arms company and agricultural bank will need R8.2bn in bailouts, while R15bn will be needed to forgive student debt and R16bn for bailouts for provinces that have not paid their bills.
ANC spokesperson Pule Mabe was not immediately able to comment when called and did not respond to a text message.
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