Budget Speech 2018

Madam Speaker,

We remain committed to the goals we set ourselves in the Freedom Charter, the Constitution and the National Development Plan (NDP).

These goals are ultimately aimed at addressing the triple challenges of poverty, inequality and unemployment.

To achieve these goals, we have to implement radical socio-economic transformation.

It would be remiss of me not to acknowledge that last year was particularly difficult for our economy.

The year was characterised by slow economic growth, recession, ratings downgrades, and heightened concerns regarding the governance and sustainability of key state-owned companies.

Despite this, the country’s economic growth outlook has improved over the past few months because of strong growth in the primary sector of the economy – particularly agriculture – as well as a welcome recovery in investor sentiment and business confidence.

Over the medium term, the growth outlook is higher than projected in last year’s MTBPS.

The cyclical recovery is matched by a renewed sense of optimism that the government can and will do its work effectively.

This presents an opportunity for us to do the things required to reignite growth and chart a course towards meeting the objectives of the NDP and fulfilling our constitutional obligations.

Our responsibilities in translating this renewed energy into tangible and sustainable economic benefits for all our people include:

Achieving these objectives will require us to forge a new compact between the social partners. We need to provide investors with the certainty required to increase investment.

Raising the level of investment and improving the ease of doing business in the country will support job creation.

Private sector investment and job creation are critical to reducing unemployment which remains stubbornly high at 26.7 per cent.

Investment opportunities are occasioned by the following global developments in our main trading partners: