File Image: Minister of Finance, Malusi Gigaba

JOHANNESBURG -The  Minister of Finance, Malusi Gigaba, on Monday convened a two day Budget Council Lekgotla sought to ensure a coordinated approach towards the inclusive economic growth agenda.

A statement released on behalf of the Ministry of Finance said that the meeting seeks to ensure a proper functioning and efficient intergovernmental system is in place - which promotes cooperation and coordination within available financial resources for maximisation of service delivery.

"This cooperation and coordination is particularly important in a constrained fiscal environment where there is slower growth in allocations. In spite of the existence of many intergovernmental forums, coordination of policy, planning and implementation remains a government-wide challenge," Minister Gigaba said". 

Amongst others, issues to be discussed in this meeting include:

  • The economic context of the 2018 Medium Term Expenditure Framework (MTEF)
  • An update on the changes to the economic context, impact of sovereign credit rating downgrades so far
  • The status of ratings (downgrades)
  • Implications thereof for spending, as well as revenue collection in the immediate future.

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Gigaba said provinces play an important role in economic growth, therefore the responsibility of radical and inclusive growth remains the responsibility for all.

"Many sectors involved in the delivery of services can, in an environment of slowing allocations, make better use of existing resources to obtain better functioning with similar results through improved coordination, collaboration, and oversight." Gigaba concluded.

President Jacob Zuma recently called on Gigaba and the Presidential Fiscal Committee to identify concrete measures to urgently address the challenges identified in the mini budget in October.

"Minister Gigaba notes and welcomes the statement and commits to working together with the Presidential Fiscal Committee and social partners to fulfill the duties outlined by the President in order to take South Africa forward," a statement read.

- BUSINESS REPORT ONLINE