Johannesburg - South Africa is likely to miss its 1.3 percent growth target this year and may have to curb spending to stick to its budget framework, Finance Minister Malusi Gigaba said.
“We do believe there are a number of hard decisions that
will have to be made,” Gigaba told reporters in
Gigaba has faced an uphill battle to revive growth and
restore investor confidence in
S&P Global Ratings and Fitch Ratings. cut their
foreign-currency assessments of
Gigaba has previously committed to fiscal discipline in an attempt to meet the budget-deficit target of 3.1 percent of gross domestic product in the year through March. Fitch estimates a gap of 3.3 percent, saying budget cuts it anticipates the National. Treasury will make later this year won’t be sufficient to offset a tax shortfall.
The government is committed to addressing the concerns raised by the ratings companies, has heeded calls for greater policy certainty and sees faster and more inclusive growth as its top priority, Gigaba said.
"If we don’t react to this situation, the economy will get into deeper trouble,” he said. “We are all frustrated by the lack of growth which, if sustained, will compromise our ability to rapidly reduce unemployment, poverty and inequality.”