Gordhan's educ priority welcomed

He said the R253.8 billion to be spent on education would help bridge South Africa's wage gap.

 

 

"The budget's focus on education is correct, as it is only through widening the pool of skilled and highly-skilled job-seekers and entrepreneurs that South

Africa will be able to begin reducing the massive wage gap between the highest earners and low earners."

 

 

It was crucial to the country's long-term future, however, that the quality of education be improved.

 

 

"The emphasis must move beyond fairer access to education and education facilities, and begin to a focus on the quality of education and on improved education outcomes."

 

 

Creamer said the government should be credited for steering the economy through the economic crisis.

 

 

"But as is clear from this year's budget, government's stimulus package has stretched the fiscus and public investment to the limit and now a new, post-recession growth paradigm is required."

 

 

South Africa' multi-billion rand infrastructure projects needed to be completed successfully.

 

 

"It is also important that a new paradigm, involving both the government and private sector, be identified to drive growth and job creation. Ultimately, it is such growth and job creation that will stimulate future tax revenues and strengthen South Africa's fiscal position again."

 

 

It was important that South Africa see some return on industrial incentives, which cost the taxpayer billions of rand, Creamer said.

 

 

"With over R40 billion worth of industrial incentives being dished out to business in the eight years from 2009 to 2016, it must be expected that key industrial sectors will begin to turn around and find new dynamism and job-creation potential."

 

 

Tax breaks for small business were to be welcomed because of the broad-based potential of such an initiative.

 

 

Creamer noted a lack of attention to the problem of service delivery failures, particularly at local government level, in Gordhan's budget speech.

 

 

There have been a number of violent and disruptive service delivery protests around the country recently.

 

 

"Government should set standards for the delivery of basic services across the country and then see to the proper financing and rolling out of such services."

 

 

In the run-up to the general elections, Creamer said the various political parties' election manifestos needed to be weighed up against the economic realities set out in the budget.

 

 

"The budget tells the nation how much we can realistically plan to spend, how much tax revenue we can raise and how much we will need to borrow.

 

 

"The budget provides a much-needed dose of realism to South Africa's political debate as we enter the season of hyperbolic, and often wholly unrealistic, election promises," he said.

 

 

- Sapa