tag:theconversation.com,2011:/us/topics/medium-term-budget-32625/articlesMedium-term budget – The Conversation2018-10-24T15:07:31Ztag:theconversation.com,2011:article/1056052018-10-24T15:07:31Z2018-10-24T15:07:31ZSouth Africa’s new finance minister postpones tough decisions<figure><img src="https://images.theconversation.com/files/242047/original/file-20181024-48721-4jyflk.jpg?ixlib=rb-1.1.0&rect=16%2C116%2C978%2C744&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">South Africa's Finance Minister Tito Mboweni must walk a fiscal tightrope.</span> <span class="attribution"><span class="source">GovernmentZA/Flickr</span></span></figcaption></figure><p>South African finance minister Tito Mboweni’s 2018 medium-term budget policy statement brought no surprises. Standing before the National Assembly on Wednesday 24 October, Mboweni <a href="http://www.treasury.gov.za/documents/mtbps/2018/speech/speech.pdf">presented</a> the Natural Treasury’s fiscal policy and projections for the next three years.</p>
<p>The country’s economic growth has been officially revised down to 0.7% – it was at 1.5% in the <a href="http://www.treasury.gov.za/documents/national%20budget/2018/speech/speech.pdf">Budget</a> tabled in February by one of Mboweni’s predecessors, Malusi Gigaba. Revenue collection is lower than had been forecast. This all means that national debt levels will, again, be higher than projected.</p>
<p>In short, there’s very little tangible good news. That is to be expected. The economy and public finances have been in a poor state for some time. The current level of economic growth is below estimates of population growth, meaning that South Africans will have become poorer per person by the end of the year. </p>
<p>But with debt levels having repeatedly exceeded the levels previous ministers of finance had promised, numerous risks on the horizon and an election looming, there was relatively little room for Mboweni to manoeuvre. </p>
<p>What Mboweni and National Treasury have tried to do is to keep walking an increasingly thin tight-rope. This involves containing the growth in debt while not reducing government expenditure or increasing taxation to the point where it greatly harms economic growth or South Africans’ well-being. </p>
<p>Unless economic growth improves, the country will have to step off this tightrope. Either debt must be increased well beyond what had been planned, possibly leading to downgrades, higher borrowing costs and the associated consequences. Or expenditure will be cut and more taxes imposed – leading to immediate negative effects for citizens.</p>
<h2>Public finances</h2>
<p>One way that Treasury is trying to stay on the tightrope is by making use of other borrowing and spending capacity in the state. In particular, it’s looking to government’s development finance institutions such as the Development Bank of Southern Africa, the Industrial Development Corporation and the Land Bank to use their borrowing and lending capacity. </p>
<p>The medium-term budget policy statement also argues that various municipalities have sufficiently reliable revenue streams to borrow and spend more than they currently do.</p>
<p>The Treasury has indicated <a href="http://www.treasury.gov.za/documents/mtbps/2018/mtbps/FullMTBPS.pdf">in the policy statement</a> that it hopes to keep tax rates at their current levels and not introduce new ones. One important exception will be at the forefront of many South Africans’ minds: increases to the cost of fuel, in this instance possible large increases in the Road Accident Fund levy, to address the massive accumulated liability in the Fund itself. </p>
<p>Last year the medium-term budget policy statement discussed risks to public finances, including possible further downgrades of debt by international rating agencies and the likely consequences. This year’s statement avoided such references – but some debt downgrades and their negative results remain a possibility. </p>
<p>Mboweni made it clear that one of the most serious risks to public finances is the perilous condition of state-owned enterprises. More than R9 billion is going to be given to South African Airways, SA Express and the Post Office in the current financial year to prop up their finances. </p>
<p>Beyond this, all he could do was express the hope that restructuring these and other state-owned entities means it could reduce the risk although he offered little detail about what “restructuring” actually means. </p>
<p>Even though he said that there should be “no holy cows”, it’s questionable whether structural shifts could really deal with the financial risks; in certain circumstances, restructuring could actually increase the state’s financial burden.</p>
<p>Reforming key state institutions in general is critical. But there will be little to show for that in the short term when it comes to public finances. In fact, in some instances, doing the right thing can lead to short-term costs. </p>
<h2>Hints, but little detail</h2>
<p>There were some suggestions in the statement of a sensible, “New Deal” way of thinking. These include the reallocation of existing funds to the Expanded Public Works Programme, clothing and textile industry support and faster-spending infrastructure programmes. But with such limited resources this is likely to only have a small positive effect.</p>
<p>And in parts, Mboweni provided too little or no detail. There remains inadequate information on the costs of providing “free higher education” as <a href="http://www.presidency.gov.za/press-statements/president%E2%80%99s-response-heher-commission-inquiry-higher-education-and-training">promised</a> by former President Jacob Zuma to new entrants. This reflects the irresponsibility of committing to a blank cheque to university student funding at a time when public finances are under huge strain.</p>
<p>Politically, the cabinet will be hoping that local and global risks will be kept in check until the 2019 election. But if some of those materialise then the government could face the unenviable task of either presenting a very unpopular budget in February 2019, or allowing public finances to deteriorate to a concerning degree.</p><img src="https://counter.theconversation.com/content/105605/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Seán Mfundza Muller receives funding from a European Union-funded project, "Putting People back in Parliament", led by the Dullah Omar Institute (University of the Western Cape), in collaboration with the Parliamentary Monitoring Group, Public Service Accountability Monitor (Rhodes) and Heinrich Boell Foundation (South Africa). He is affiliated with the Public and Environmental Economics Research Centre (University of Johannesburg), regularly making inputs to Parliament oversight of the national budget, advising civil society groups on public finance matters and consulting for private sector organisations on an ad hoc basis. He resigned from the South African Parliamentary Budget Office in 2016. The views expressed are his own.</span></em></p>South Africa’s finance minister has chosen to walk a tightrope rather than face tough choices about cutting expenditure or raising taxes.Seán Mfundza Muller, Senior Lecturer in Economics and Research Associate at the Public and Environmental Economics Research Centre (PEERC), University of JohannesburgLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/856432017-10-18T15:05:18Z2017-10-18T15:05:18ZWhat’s at stake in South Africa’s new finance minister’s first budget<figure><img src="https://images.theconversation.com/files/190602/original/file-20171017-30394-eijha0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Reuters</span></span></figcaption></figure><p><em>There’s a great deal hanging on South Africa’s 2017 medium term budget policy <a href="http://www.treasury.gov.za/comm_media/press/2017/2017091801%20Media%20Advisory%20MTBPS%202017.pdf">statement</a>. Three factors are at play: there is political turmoil around the governing African National Congress, the country’s economy is performing poorly and this is the first budgetary statement from the new Finance Minister Malusi Gigaba. The Conversation Africa’s Sibonelo Radebe asked Jannie Rossouw to layout his expectations.</em></p>
<p><strong>What keeps you up at night in relation to this medium term budget?</strong></p>
<p>The single most worrying factor is the lack of economic growth South Africa faces. Growth has <a href="https://tradingeconomics.com/south-africa/gdp-growth-annual">slowed down</a> significantly in recent years and the economy flirted with <a href="https://mg.co.za/article/2017-06-07-sas-in-a-recession-heres-what-that-means">recession</a> after shrinking during the last quarter of last year and the first quarter of this year. The economy did <a href="https://www.iol.co.za/business-report/breaking-news-south-africa-moves-out-of-recession-11086750">bounce back</a> into positive growth during the second quarter but the outlook remains unimpressive. Only 0.5% growth is expected for 2017 and less than 2% over the medium term. </p>
<p>Owing to this lack of growth, <a href="https://theconversation.com/the-lesser-known-and-scarier-facts-about-unemployment-in-south-africa-83055">unemployment</a> is on the increase – it now stands at a staggering 27% – while government revenue is under pressure. It also implies that the government’s burden on the economy (for instance total government debt as percentage of gross domestic product, or<a href="http://www.treasury.gov.za/documents/mtbps/2016/mtbps/MTBPS%202016%20Full%20Document.pdf">Debt/GDP ratio</a>) will increase. </p>
<p>Government’s debt to GDP ratio is currently <a href="http://www.treasury.gov.za/documents/mtbps/2016/mtbps/MTBPS%202016%20Full%20Document.pdf">budgeted</a> to level out around 50%. This is to be welcomed because any increase in the ratio increases the interest burden. </p>
<p>But if slow growth and revenue shortfalls persist, government debt will increase. The debt to GDP ratio will be on its way to 65% of GDP in the medium term. </p>
<p>And should the combination of low growth and growing government expenditure continue after the period of this medium term statement (2017/18 - 2020/21), the debt/GDP ratio might be on its way to 100%. This projection really stresses one of the most worrying factors that has to be addressed in this statement: Limiting the level of government debt before it reaches this level. </p>
<p>In other countries where this level has been exceeded, severe adjustments had to be forced on their economies. Take the <a href="https://tradingeconomics.com/ireland/government-debt-to-gdp">Irish Republic case</a>. Remuneration levels and employment numbers in the civil service had to be cut dramatically to deal with the <a href="http://cpsu.ie/the-cuts/">Irish government debt crisis</a>.</p>
<p><strong>There is a new finance minister in place and he comes with shifting political dynamics. How do you rate him and what do you expect from him?</strong></p>
<p>It is difficult to rate the new minster, given that he’s only been in the job since April and the fact that he has not yet tabled his first budgetary statement. The only statement against which his performance can really be assessed is the <a href="http://www.huffingtonpost.co.za/2017/07/13/governments-economic-growth-action-plan-gigabas-speech-in-f_a_23027748/">14-point plan</a> he announced in July 2017.</p>
<p>We’ll be watching the medium term statement for his report back on progress in implementing it.</p>
<p>But Gigaba comes with worrying political dynamics, including accusations that he is party to <a href="http://www.fin24.com/Opinion/connecting-the-dots-on-gigabas-state-capture-project-20171009">corruption</a>. </p>
<p>And its difficult to separate him from the history of bad policy options of the African National Congress which has delivered the prevailing lacklustre economic performance. The fiscal crisis facing South Africa is a direct result of these policies. </p>
<p><strong>How significant is the medium term budget policy statement?</strong></p>
<p>It’s very important as it provides an overview of government’s plans for expenditure and for raising revenue over the next three years. A three year view is significant because it provides insight into planned government expenditure and indicates expected tax increases that South African taxpayers have to face. It also informs decisions of the credit rating agencies about South Africa’s fiscal stability.</p>
<p>The statement forms the basis of the <a href="http://www.treasury.gov.za/documents/national%20budget/default.aspx">annual budget</a> of government revenue and expenditure that is tabled in Parliament in February each year. </p>
<p>The statement is the first formal opportunity after the tabling of the annual budget where the government reports on the actual performance of revenue raised in comparison to budgeted revenue and of actual expenditure in comparison to budgeted expenditure.</p>
<p>This reporting by government gives an early indication of expectations for the main budget in February. For instance, if government revenue is underperforming, the expectation is that taxes will be increased the following February. Indeed a tax increase might materialise in this medium term statement.</p>
<p><strong>What in you view will be key focus areas in this medium term statement?</strong></p>
<p>As South Africa’s economic growth is currently lower than the forecast used for the <a href="http://www.treasury.gov.za/documents/national%20budget/default.aspx">2017/18 fiscal year</a>, tax collection has come under pressure. A <a href="http://www.fin24.com/Economy/gigaba-faces-r50-billion-budget-shortfall-economist-20170901">revenue shortfall</a> is expected for this fiscal year. The medium term statement is when the size of the shortfall will be formally disclosed.</p>
<p>Given expectations of a substantial shortfall, South Africans should brace themselves for substantial tax increases in the main budget in February 2018. The fiscal crisis might even be so serious that the government might decide to divert from previous practice and announce tax increases in this medium term statement.</p>
<p>Like any other government in the world, it raises revenue through taxes and use this revenue to fund its expenditure. If expenditure exceeds revenue, the difference must be borrowed, which adds to the level of government debt, or expenditure must be cut. </p>
<p><strong>One of the biggest budgetary headaches is the ailing state owned enterprises. What should be done?</strong></p>
<p>Government is really throwing good money after bad by using public money to bailout <a href="https://www.businesslive.co.za/bd/companies/transport-and-tourism/2017-08-23-secret-gigaba-plan-to-rescue-bankrupt-saa-exposed">ailing</a> state owned enterprises. I have said a long time ago that South African Airways should simply be <a href="https://theconversation.com/south-africa-must-free-itself-from-the-burden-of-owning-a-national-airline-64004">given away</a>. This is a much cheaper option for the taxpayer instead of never ending bailouts. The South African government should reassess its holding of state owned enterprises and close, sell or give away those that are no longer financially viable. Such action will remove a large financial burden on the South African taxpayer.</p><img src="https://counter.theconversation.com/content/85643/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jannie Rossouw is a C3-rated researcher and receives funding from the National Research Foundation (NRF). He is also a concerned South African taxpayer. </span></em></p>South Africa waits with bated breath for the 2017 medium term budget policy statement from new Finance Minister Malusi Gigaba, as it might reveal key signals of where economic policy is headed.Jannie Rossouw, Head of School of Economic & Business Sciences, University of the WitwatersrandLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/678012016-10-27T17:43:23Z2016-10-27T17:43:23ZSouth Africa’s finance minister juggles both the books and the politics<figure><img src="https://images.theconversation.com/files/143490/original/image-20161027-11260-bvzlps.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A defiant student sits in the middle of a road after a crowd was dispersed during a protest over fees to parliament on the occasion of finance minister Pravin Gordhan presenting his medium-term budget.</span> <span class="attribution"><span class="source">Nic Bothma/EPA</span></span></figcaption></figure><p><em>South Africa’s finance minister Pravin Gordhan <a href="http://www.treasury.gov.za/documents/mtbps/2016/">delivered his medium-term budget</a> with a lot more than balancing the books on his mind. The Conversation Africa’s Charles Leonard asked David Everatt how well the beleaguered minister scored on managing the political sums.</em></p>
<p><strong>Pravin Gordhan went to talk to the protesting <a href="https://theconversation.com/africa/topics/university-fees-3561">#FeesMustFall</a> students outside Parliament before delivering his medium-term budget speech. Was it clever politics or political grandstanding?</strong></p>
<p>Both. Plus one thing otherwise completely lacking – leadership. He also called on students to stop burning and return to class and exams - another missing message. Leadership and courage – going out to meet the students, face to face, which has been one of their key demands. One wonders: why is he the only minister willing to do so?</p>
<p>Clever politics. Sure, he’s showing that he has broad-based support, which I suspect will have grown as a result of meeting the students, and basically saying to others, “come get me if you dare”. That message of course goes to the National Director of Public Prosecutions, <a href="http://www.rdm.co.za/politics/2016/10/24/how-shaun-abrahams-is-cooking-his-goose">Shaun Abrahams</a> and the police unit, the Hawks, who have laid <a href="https://theconversation.com/charges-against-finance-minister-show-misuse-of-south-african-law-67177">rather spurious charges</a> of fraud and theft against him, as well as President Jacob Zuma and his political allies in the African National Congress. They see Gordhan as an obstacle to their alleged attempts at <a href="http://mg.co.za/article/2016-09-03-why-patronage-and-state-capture-spell-trouble-for-south-africa/">state capture</a>.</p>
<p><strong>What does the medium-term budget tell you about South Africa’s political landscape?</strong></p>
<p>The fact that Gordhan kept mentioning the risk environment, and kept repeating the dangers posed by state-owned enterprises, speaks volumes about the <a href="http://www.news24.com/elections/news/sa-sliding-into-crony-capitalism-naidoo-20140417">crony capitalist</a> environment in which he is operating, and by which he is constrained.</p>
<p><strong>In his speech Gordhan said: “What we seek - and more - can be done. If we collectively make the right choices; support confidence and investment in our economy; create a predictable and stable policy and political environment; and put the national interest first. It’s up to us.” Is this a plea for his numerous enemies to back off?</strong></p>
<p>Quite clearly, at a political level, he was saying pretty much that. But I think at base he is caught between a desire to grow the economy and meet his government’s National Development Plan’s <a href="http://www.gov.za/issues/national-development-plan-2030">goals</a>, and those of his cabinet colleagues who seem to ignore the plan and have little interest in economic growth.</p>
<p>What is missing is the need for the private sector to come to the table without preconditions so that the R500 billion - R600 billion “<a href="http://pentag.com/2014/06/20/rising-inflation-plunging-growth/">cash pile</a>” they are said to be holding onto can be mobilised to stimulate domestic investment. </p>
<p>Second, while it is important to be sensitive to the <a href="http://businesstech.co.za/news/general/126013/how-rating-agencies-make-decisions-about-south-africa/">ratings agencies</a> criticisms, South Africans cannot allow them and the country’s old capital to determine and drive economic policy. It’s time for Gordhan and the government in general to lead, rather than follow, on economic policy.</p>
<p><strong>Gordhan has to balance between development and growth – did he pull it off?</strong></p>
<p>He did not. We have neither growth nor development. The <a href="http://www.unicef.org/southafrica/resources_4768.htm">social development indicators</a>, for example for health and education, are appalling especially in terms of access and quality for the poor. This is particularly true for people who live outside the cities. There is no clear policy to address social and economic inequality – or the implications of inequality for growth and development.</p>
<p><strong>The minister allocated a massive R17.6 billion more than projected for post-school education and training over three years. This is in addition to the R16 billion added in February. The money will be used to subsidise the fee increases for poor households. Do you think he would have pleased the students?</strong> </p>
<p>No, because the <a href="http://ewn.co.za/2016/10/03/Students-leaders-demand-free-education---today">demand</a> has escalated to free post-school education for all. But there is a need to be sensitive to the broader ramifications of this increase. South Africa’s economy is not growing, and is not expected to grow in the short to medium terms. On top of this there are no tax increases (yet…). Increased funding for post-school education therefore means less for others – such as schooling, health, housing – further contributing to inequalities.</p>
<p><strong>Gordhan has indicated a cut in spending on civil servants. Are we heading for a clash with the powerful public sector unions come wage negotiations?</strong></p>
<p>I think he was talking about a freeze on posts – already in place in many departments – and not replacing retirees. The real challenge will be meeting the goals of the National Development Plan with a depleted civil service, and one disheartened by our current, unpleasant politics.</p><img src="https://counter.theconversation.com/content/67801/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>David Everatt does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>South African finance minister Pravin Gordhan’s medium-term budget speech was a lot about balancing the politics of a divided ruling ANC.David Everatt, Head of Wits School of Governance, University of the WitwatersrandLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/677362016-10-26T15:09:49Z2016-10-26T15:09:49ZFinance minister plugs some gaps, but South African economy is still precarious<figure><img src="https://images.theconversation.com/files/143306/original/image-20161026-11278-137v5cc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">South African Finance Minister Pravin Gordhan presenting the medium term budget. The country's economy remains in the doldrums.</span> <span class="attribution"><span class="source">Nic Bothma/EPA</span></span></figcaption></figure><p><em>South Africa’s finance minister Pravin Gordhan presented the country’s 2016 <a href="http://www.treasury.gov.za/documents/mtbps/2016/mtbps/MTBPS%202016%20Full%20Document.pdf">medium term budget</a> amid rising economic challenges marked by low growth, a crisis in higher education funding and fears of state capture. The Conversation Africa business and economy editor, Sibonelo Radebe, asked Dr Co-Pierre Georg to interpret key points.</em></p>
<p><strong>What is your reaction to the minister’s statements on funding higher education?</strong></p>
<p>The minister allocated R17 billion over the next three years to fund higher education. This will ensure a fees freeze for students from families who earn less than R600 000 per year and includes a R9.2 billion increase to the National Student Financial Aid Scheme (NSFAS).</p>
<p>This, however, is not enough to solve the funding crisis in higher education. Unfortunately, we have too few students from poor households at our universities since many struggle with a broken primary and secondary school system.</p>
<p>The high fees we have today pose an extreme challenge for the few students from poor families that eventually make it to university. I had hoped for a bold move from the minister to say that tertiary education for students from poor families will be free in the medium term. The additional support of the <a href="http://www.nsfas.org.za/content/">National Student Financial Aid Scheme</a> might alleviate some of the pressure on middle-class families, but the aid scheme remains ineffective and underfunded.</p>
<p><strong>What could he have done better and how?</strong></p>
<p>First of all, I think it is the right move to increase tax revenue by R43 billion over the next two years. I don’t think this is sufficient, though, and had hoped for a more substantial increase of income tax in particular for high and very high incomes. We live in a country where 10% of the people are so rich that they pay <a href="http://businesstech.co.za/news/wealth/88062/do-we-pay-too-much-income-tax-in-south-africa/">93% of the taxes</a>. This level of inequality is not sustainable and we need to have a national dialogue about what is a fair share strong shoulders can burden. </p>
<p>While Minister Gordhan did flag state-owned enterprises as a risk, he did not take sufficient action to rein them in. <a href="https://theconversation.com/south-africa-must-free-itself-from-the-burden-of-owning-a-national-airline-64004">South African Airways</a>, for example, should be privatised because it has been a continuing hazard to the budget. </p>
<p>What was most disappointing for me, though, was the continuing support of the haphazard <a href="https://theconversation.com/how-the-state-capture-controversy-has-influenced-south-africas-nuclear-build-58879">nuclear build</a>. Various studies have shown by now that nuclear is not the cheapest form of energy. The sheer size of the tender and the precarious state of the country’s institutions makes me fear for the worst: that South Africa ends with an overpriced nuclear program that will plunge future generations head over heels into debt.</p>
<p><strong>What should be done to address SA’s fundamental economic challenges?</strong></p>
<p>The most important, and most immediate goal must be to prevent a downgrade by the ratings agencies. The outlook is bleak, though. As a matter of urgency, President Jacob Zuma and people in his camp, who are using the National Director of Public Prosecutions, Shaun Abrahams, must end their unsubstantiated attacks on Minister Gordhan. Abrahams has <a href="http://www.rdm.co.za/politics/2016/10/24/how-shaun-abrahams-is-cooking-his-goose">summonsed</a> the finance minister on charges of fraud and theft. <a href="https://theconversation.com/charges-against-finance-minister-show-misuse-of-south-african-law-67177">Legal experts</a> have argued repeatedly that the charges brought forward by the police unit, the Hawks, are without substance and politically motivated.</p>
<p>International investors and the rating agencies demand policy continuity and a clear commitment to fiscal discipline. </p>
<p>In the medium to long term, our biggest issue is clearly the lack of growth in our economy – Minister Gordhan reduced expectations to 0.5% growth for the year. Anything below 5%, however, will not lead to a sufficient and tangible improvement in people’s living conditions. </p>
<p>Policy clarity is also key to encourage foreign direct investment. But we also need to cut wasteful expenditures, and I was happy to hear the minister speak about containing the government wage bill. Finally, we need to liberalise the labour market, which currently protects those who already have a job rather than providing opportunities for those who are looking for one.</p>
<p><strong>What do you think of the political environment within which this budget was presented?</strong></p>
<p>South Africa is standing at the precipice. We need to decide whether we want to remain a liberal democracy that protects civil liberties or descend into an authoritarian state where a tiny elite can plunder our country’s resources. The <a href="http://www.rdm.co.za/politics/2016/09/05/10-reasons-the-anc-is-in-serious-trouble">battle that rages</a> on within the ruling ANC has created a leadership vacuum which populists and extremists are now trying to fill.</p>
<p>Our one key problem is state capture and political uncertainty. As Minister Gordhan pointed out, our fastest growing expenditure is the service on debt. This is the price we pay for the continued attacks on Minister Gordhan by President Zuma and his cronies. </p>
<p>The most important item on our agenda should be to support our democratic institutions and put an end to state capture. Various civil society movements, such as the new <a href="http://themediaonline.co.za/2016/10/the-campaign-to-save-south-africa/">SaveSouthAfrica</a> movement led by ANC stalwart and business person Sipho Pityana are now mobilising citizens to stand up and hold their government accountable. These are exactly the initiatives we need to lay the foundations for future economic growth.</p><img src="https://counter.theconversation.com/content/67736/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Co-Pierre Georg is a policy associate at Ecnomic Research Southern Africa. He writes in his private capacity. </span></em></p>South Africa’s 2016 medium term budget was awaited with bated breath amid rising political tensions, increasingly violent student protests and the threat of a credit downgrade.Co-Pierre Georg, Senior Lecturer, African Institute for Financial Markets and Risk Management, University of Cape TownLicensed as Creative Commons – attribution, no derivatives.