#Budget2020: 'Substance over Bluster' - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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There is much riding on the contents of this week’s Budget2020 speech. Perhaps a little more this time because of a slide into full-blown “junk” status, which is a very clear and present danger, writes BusiMavuso2

Business Leadership South Africa's Busi Mavuso says as business they have already committed to participating in government’s R500 billion infrastructure fund.

We need the actual numbers and for the first time, the speech will matter a whole lot less. On the matter of the wage bill, Treasury indicated in the medium-term budget statement that it would find some R150 billion in savings over the medium term and deliver details next week. These are the sort of details that Moody’s Investors Services, the last ratings agency to have us hanging on by a thread to investment grade, will want to see from Treasury. My fear is that the speech along with the budget review documents will continue to walk a narrow tightrope of what is credible and what is not.

To mitigate these perhaps unavoidable consequences on reduction if not the amount of workers but their remuneration, as business we have already committed to participating in government’s R500 billion infrastructure fund that would be hosted by the Development Bank of Southern Africa. This plan was mooted in Octobers’ medium-term budget speech, its details are urgent.

In much a similar vein, the fact that the government is now willing to listen and accept that fixing the issue of load-shedding is more long-term nature is a welcome change. For a period of between 18 months and a full two years, Eskom will have to follow a schedule of load-shedding if the power utility is to finally overcome its maintenance backlog.

 

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