Business Unity South Africa (Busa) on Thursday welcomed the prioritisation of education and social spending, as well as the reforms in public procurement outlined by Finance Minister Pravin Gordhan in his Budget speech on Wednesday.
Busa believes these measures will generate improved efficiencies in State spending.
“Targeted interventions in education and healthcare, together with the implementation of the national minimum wage, are in line with the country’s development goals and will help to combat inequality and provide the basis for sustainable, inclusive, economic growth.
“Investment in skills development and education is an investment in our collective future,” said Busa CEO Tanya Cohen.
The organisation noted that the implementation of a high tax bracket and increased tax rate was both progressive and responsible, while pointing out that maintaining value-added tax and corporate income tax at current levels was also welcomed.
It further supported the stabilisation of government’s wage bill and efficiency and cost containment efforts targeted at stabilising government debt at 48% of gross domestic product (GDP) over the next three years. Further, it congratulated Treasury on maintaining the budget deficit for 2017/18 at 3.1% of GDP, in line with previously articulated fiscal consolidation commitments.
“We are particularly pleased about the decisive focus provided by the Budget in relation to inclusive economic growth. The commitment to address regulatory burdens, particularly in relation to doing business for small to medium enterprises is welcomed,” the organisation said, adding that it was committed to playing a role in government’s transformation agenda and in growing the economy.
“This requires that we transform the economy through black economic empowerment and other measures which fully integrate all members of society in contributing to and benefiting from the economic potential of the country,” it noted.
Busa further said that government’s call to increase private sector participation in sectors dominated by public enterprises would ensure that effective regulatory authorities curb the power of monopolies.
“An environment that enables smaller enterprises across sectors to access the market and thrive is critical to inclusive growth.”