DA MPs were the spoilers on Budget Day in the House. They remained sitting while all other parliamentarians gave a standing ovations to the new/old finance minister. Gordhan had a tough task at hand given the tough domestic conditions caused by a 0.9% economic growth rate and one that had to be dealt with at very short notice after the finance ministers’ musical chairs over the four days in December, now dubbed 9/12.

DA finance spokesman David Maynier described the Budget as “a little disappointing”. “There’s nothing new that promotes economic growth. I would have liked the minister to be far more robust and make a much stronger statement on the part-privatisation of the state-owned entities (SOEs),” he said. Since the State of the Nation Address (SONA) the DA has touted South Africa’s 8.3 million jobless as their rallying cry. With few details on the Employment Tax Incentive, effectively the youth wage subsidy paid to companies to employ young workers, the DA felt particularly that young unemployed persons have been let down.

“It seems to me all the discussions with business are on-going and have not translated into this Budget,” Maynier added.

But the DA stood alone in its criticism as even the usually sharply critical Economic Freedom Fighter commander-in-chief Julius Malema glowed with large – if not complete – approval. The finance minister had “deliberately addressed” all that needed to be addressed to avoid a downgrade to junk status by rating agencies. “We need the unity of the country. It’s not all lost. We still have capable men and women,” said Malema. “He (Gordhan) is trying by all means to speak to all constituencies…”

There was one worry, however, regarding the lock on public service jobs that Gordhan announced as part of the R10 billion expenditure reduction in the 2016/17 financial year. That could be a concern, said Malema, if the state decided to “victimise” workers and retrench them.

For ANC secretary-general Gwede Mantashe the Budget addressed issues like fiscal consolidation to ensure there was no downgrade by rating agencies, but also to stabilise the economy. “It is focusing on the sustainability of the economy,” said Mantashe, adding there are key allocations put to key economic matters from transport, infrastructure, agriculture to education. “It’s a Budget that should be welcomed by the country and the people.”

But was the Budget radical enough, Mantashe was asked. “It’s radical enough,” he replied. “Sometimes radical can set a rupture… and commit mistakes.”

The ANC secretary-general also had a special word for protesting university students: “Students must stop, think and look at what support they are getting.” Like Gordhan in his Budget speech, Mantashe maintained there was no need for violence to raise issues. The fiscus allocations over the next three years have set aside an additional R16 billion for higher education.

United Democratic Movement (UDM) chief whip Nqabayomzi Kwankwa said: “It’s a good Budget, very balanced… This thing is possible”. He welcomed the cost-cutting of government expenditure by R25 billion over the next three years – a reduction to R750,000 in the value of state-bought cars for public representatives emerged on Wednesday amid promises of more details to come in days and weeks ahead.

COPE leader Mosiuoa Lekota agreed, but said further cost cutting could have been achieved by reducing the size of President Jacob Zuma’s executive, the largest in democratic South Africa. “He (Gordhan) is looking at the needs of the country. All of us have a commitment to save our country,” he added.

One theme throughout the speech was a social compact between government, labour and business, with the role of private sector repeatedly emphasised. Privatisation was not on the table, Gordhan told MPs, but private sector co-investment and minority shareholding was. Following several meetings with private business and a joint task team, further details would be announced – if and when.

Dr Iraj Abedian, chief executive of Pan-African Capital Investments, welcomed the Budget, which had put the National Development Plan (NDP) at the centre. “It hit all the right notes – strong on the right notes, short on tangible urgent implementation measures,” he said, adding it was now a wait-and-see situation how urgently measures would be put into action.

Gordhan insisted there was no way government could live beyond its means. “If you can afford to repay R1,000, borrow R1,000, not R2,000,” was his Budget message. Hence in the current tough economic environment, much was made of reprioritisation of some R31 billion. Effectively this meant moving unspent, unused monies elsewhere. Such reprioritisation made available around R1 billion for drought relief, from the departments of water and sanitation, rural development and agriculture. However, the Budget has built into the system some leeway for a later financial rejig through the contingency reserves. These were boosted to R6 billion, up from a projected R2.5 billion in the Medium-term Budget Policy Statement (MTBPS) of October 2015.

This could address the concern by African Christian Democratic Party (ACDP) MP Steve Swart that not enough was said about the drought and measures to counter its impacts. Otherwise, Swart said, the party welcomed the focus on rationalising SOEs, and the fiscal consolidation, which anticipates the budget deficit to decline to 2.8% in the 2017/18 financial year from the current 3.2%. “We like that there was no VAT increase,” he said, adding the party also welcomed the focus on cutting government expenditure by R25 billion over the next three years.

IFP secretary-general Sibongile Nkomo praised the finance minister for his frankness in acknowledging the country’s challenges and for outlining some concrete measures. “It gives hope. (But) we need to move beyond hope to do…” she added.

The select committee on trade and industry was quick off the mark to welcome the R23 billion to support black industrialists. Trade and Industry Minister Rob Davies welcomed the Budget, which earlier acknowledged the multi-billion rand investments and incentives for automotive manufacturing. “We have things going for us that the ratings agencies need to take into consideration,” he said.

For Public Enterprise Minister Lynne Brown some tough negotiations lie ahead with regards to the Budget’s proposals to rationalise, where necessary, and to improve the efficiency of SOEs, including the possible merger of the troubled SAA and SA Express. The minister agreed with Gordhan’s view that SOEs cannot be a drain on the national fiscus, said her office, indicating announcements would be made when concluded.

Amid a tyre tax from October 2016, the usual sin tax increase on alcohol, except traditional African beer, and tobacco, there will be a sugar tax from 1 April 2017. Since there are 12 teaspoons of sugar in a 340ml can of cool drink, a smiling Health Minister Aaron Motsoaledi, said: “I finally get what South Africa needs”. DM

Photo: South Africa’s Finance Minister Pravin Gordhan delivers his 2016 budget address to the parliament in Cape Town, February 24, 2016. REUTERS/Mike Hutchings.