Godongwana must deliver a stimulus-led mid-term budget - A growth-oriented bid-term budget statement would go a long way towards creating a fertile environment for new investments
has an opportunity to announce his influence and deliver a growth budget in this year’s mid-term budget policy statement after years of austerity, and this should ideally include new stimulus packages for small and medium enterprises .
The first prize would be for the minister to deliver a stimulus-led or growth statement. Previous stimulus plans triggered by the Covid-19 pandemic failed most SMEs because they were geared more towards larger medium enterprises, so there’s an opportunity to try again and bring in alternative lenders who don’t bring the same burdensome conditions as banks.
I am cautiously optimistic, given comments made by Godongwana just before he became finance minister. In an opinion piece written two weeks before he took over the hot seat,: “Key elements of such a growth strategy will include, among other things, structural reforms, public investment, particularly in infrastructure and SMME support, including access to finance.” These are encouraging words.
It is morally correct to support those who are languishing in poverty and unemployment but, for the economy to rebound, there needs to be a simultaneous shift towards sustainable, growth-inducing policies.after becoming minister that the problem, as he saw it, with the debate about supporting the unemployed is “… there is little attention on the long-term issue of growth.
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