Opposition events welcome Finance Minister’s exhausting stance on SOE bailouts

In his maiden Medium-term Finances Coverage Assertion (MTBPS) on Thursday, Finance Minister Enoch Godongwana held the road that his predecessor drew, saying that powerful love was the order of the day for state-owned enterprises.

Finance Minister Enoch Godongwana and his group forward of his maiden Medium-term Finances Coverage Assertion in Parliament on 11 November 2021. Image: GCIS.

JOHANNESBURG – Opposition events have welcomed the finance minister’s hard-line stance on SOEs.

In his maiden Medium-term Finances Coverage Assertion (MTBPS) on Thursday, Enoch Godongwana held the road that his predecessor drew, saying that powerful love was the order of the day.

And the funds paperwork again that up, with no plans to pump funds into failing SOEs which have already sucked tens of billions from the nationwide fiscus.

ALSO READ:
• MTBPS: SA financial system to develop by 5.1% in 2021 & R450bn allotted to municipalities
• Godongwana refuses to offer in to stress to extend govt expenditure
• State has to shift infrastructure funds for public wage invoice – Godongwana

Godongwana stated that since 2013, the federal government had directed greater than R290 billion to bailout SOEs like Eskom, SAA and arms producer, Denel.

And he stated that the times of throwing good cash after dangerous to rescue SOEs that have been badly managed and had didn’t ship have been over.

“Going ahead, the restructuring of state-owned firms knowledgeable by an evaluation of their strategic relevance is a precedence on this Medium-term Finances Coverage Assertion, no further funding is offered for state-owned firms.”

Democratic Alliance (DA) finance spokesperson, Dion George, stated that he was inspired by the “powerful love” that Godongwana stated can be given to SOEs.

“Sure, that’s good. He stated that they don’t seem to be going to be giving any allocations to the state-owned enterprises however in fact, the proof is within the consuming,” he stated.

George stated that he was additionally inspired by the truth that Treasury has determined to make use of the short-term commodities growth to handle the deficit quite than to develop authorities spending.

WATCH: Godongwana: SOCs have been badly managed, no further funding in newest funds



Source

Leave A Reply

Your email address will not be published.