Mixed reaction to mid-term budget policy

Deputy President Cyril Ramaphosa, front left, and President Jacob Zuma, right, during the Mid-Term Budget Policy speech at� Parliament in Cape Town on Wednesday. Picture: Kopano Tlape

Deputy President Cyril Ramaphosa, front left, and President Jacob Zuma, right, during the Mid-Term Budget Policy speech at� Parliament in Cape Town on Wednesday. Picture: Kopano Tlape

Published Oct 27, 2016

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Cape Town - Finance Minister Pravin Gordhan’s mid-term budget policy statement received mixed reactions on Wednesday.

Some praised Gordhan for pulling off a tough balancing act, while others disagreed with him, but vowed to back him against “persecution”.

ANC secretary-general Gwede Mantashe welcomed the budget proposals, saying Gordhan did “relatively well under the circumstances”. Mantashe said he was impressed that government would sustain its spending on both higher and basic education.

“I think money put in must reassure students that this commitment isn’t just lip service, it is a commitment,” said Mantashe.

The DA also praised the minister’s speech, with its leader, Mmusi Maimane, adding that they would be lobbying for more interventions in the higher education sector.

But he condemned the violent student protest that played itself outside parliament’s gates while Gordhan was delivering his speech.

Police used stun grenades and rubber bullets to disperse the protesters.

Maimane said government had failed to adequately res­pond to the demands of students, but had rather responded with force.

“We have a government that has failed to respond to the needs of our people. This cannot be the culture we live on going forward,” he said.

Higher Education Minister Blade Nzimande also criticised the protesting students, describing the violent scenes outside the legislature as “unfortunate” and “unpleasant”.

He acknowledged that while adding R17 billion to fund tertiary education over the next three years was a welcome relief, it would not be enough to provide free education to all poor, academically deserving students.

The absence of the provisions of free higher education came as a disappointment for Economic Freedom Fighters boss Julius Malema.

“The ANC must take full responsibility and continue to look for money, call a national dialogue where concrete proposals will be made on where money can be sourced so that we finance this free education. It is not going to go away, it is going to happen, year in, year out, until free education is ­delivered,” he said.

“We do not agree with his (Gordhan) budget, we don’t agree he did not declare free education. But his limitation is that he is serving a wrong organisation,” Malema said.

The Inkatha Freedom Party (IFP) praised Gordhan for staying the path of fiscal consolidation, but cautioned that increased borrowing to fund government priorities did not bode well for the future.

“What is of grave concern to the IFP is South Africa’s increasing debt, which currently stands at just over R2 trillion, and currently generates a debt repayment of R147bn per year. Our worry is that should the country suffer another credit ratings downgrade, the interest payment will increase and that additional debt service fee will have to be found from the fiscus,” said IFP chief whip Narend Singh.

African News Agency

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