Government to maintain fiscal policy stance

AUGUST 9, 2016

National Treasury says it will maintain government’s fiscal policy stance as articulated in the 2016 Budget.

In a statement, Treasury said it had noted some of the comments by rating’s agencies on the outcome of the 2016 Municipal Elections which were held last week.

“Government remains committed to implementing fiscal consolidation and returning public finances to a sustainable path while protecting core social and economic programmes. Government’s track record of achieving fiscal targets lends weight to future fiscal plans, in particular that of maintaining the expenditure ceiling over the medium term.

“Furthermore, government remains committed to its economic reform agenda that is aimed at raising the level and inclusivity of economic growth,” it said.

Treasury said the collaboration with business, labour and civil society to restore and maintain confidence in the economy and address the structural constraints to economic growth will continue.

Government is focusing on unblocking obstacles to faster employment growth in key sectors; undertaking reforms in state-owned companies; continuing to invest in economic infrastructure through public-private partnerships and expanding the independent power producer programme.

“Fast-tracking the implementation of these reforms will ensure that challenges of poverty, inequality and unemployment are addressed effectively.

“The National Treasury is also committed to strengthening municipal finances through budget reform and technical support initiatives and working with cities to accelerate investment in urban development through the City Support Programme,” said Treasury. – SAnews.gov.za