National Treasury https://www.gov.za/ en Government responses to rating action of Moody’s Investors Service https://www.gov.za/news/media-statements/government-responses-rating-action-moody%E2%80%99s-investors-service-23-mar-2018 <span> Government responses to rating action of Moody’s Investors Service</span> <span><span>lebang</span></span> <span>Mon, 03/26/2018 - 08:03</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2018-03-23T12:00:00Z">23 Mar 2018</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><h3>Government’s response to the rating action of Moody’s Investors Service (Moody’s)</h3> <p>Government notes and welcomes Moody’s decision to affirm South Africa’s long term foreign and local currency debt ratings at ‘Baa3’ and to also revise the outlook to stable from negative. The action follows Moody’s decision to place the sovereign’s credit rating under a 90-day review for possible downgrade commencing on 24 November 2017.<br /><br />The action notably confirms the sovereign as an investment grade credit. According to Moody’s, the ratings affirmation reflects the following drivers:</p> <ul><li>The previous deterioration of South Africa's institutions will gradually reverse under a more transparent, predictable policy framework;</li> <li>The improved growth performance and prospects; and</li> <li>The  announced  fiscal  adjustment  plans  in  the  2018  Budget  that  would stabilise and eventually reduce the debt burden.</li> </ul><p>According to Moody’s, the new administration faces equally significant opportunities and challenges. Moody’s indicate that steady progress in meeting the objectives set out in the President’s State of the Nation Address (SONA) is essential for the country’s economic and fiscal prospects to be sustained. They further note that political, policy and practical challenges of meeting diverse economic, social and fiscal objectives cannot be underestimated.<br /><br /><strong>Government response</strong><br /><br />As part of the government’s regular stakeholder interactions, various engagements were held with the rating agency, both prior and following the 2018 Budget publication and as part of the investor roadshow.<br /> <br />The government fully recognizes Moody’s assessment of challenges and opportunities the country faces in the immediate to long-term.<br /><br />To improve South Africa’s investment and economic prospects, the government continues to work diligently on practical steps to provide the necessary policy certainty such as the finalization of mining legislation.<br /><br />Through the SONA the President expressed strong commitment and will to fast-track the implementation and finalization of key sectoral structural reforms as well as reforms to State-Owned Companies.<br /><br />Collaboration between government, business, labour and civil society is also yielding necessary interventions to positioning South Africa as an attractive investment destination while also creating an enabling policy environment for inclusive economic growth. The rating action by Moody’s demonstrates that South Africans working together can achieve remarkable outcomes.<br /><br />Government would like to thank all stakeholders whose efforts ensured such a positive rating outcome.</p> <p>Enquiries:<br />Communications Unit<br />Email: <a href="mailto:media@treasury.gov.za">media@treasury.gov.za</a><br />Tel: 012 315 5944</p> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-subjects field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More on</div> <div class="field__items"> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/706" hreflang="en">Economy</a></div> </div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/speech-categories/media-statements" hreflang="en">Media Statements</a></div> Mon, 26 Mar 2018 06:03:49 +0000 lebang 778367 at https://www.gov.za https://www.gov.za/news/media-statements/government-responses-rating-action-moody%E2%80%99s-investors-service-23-mar-2018#comments National Treasury on the Amendments to Regulation 28 of the Pension Funds Act and public comments https://www.gov.za/news/media-statements/national-treasury-amendments-regulation-28-pension-funds-act-and-public <span> National Treasury on the Amendments to Regulation 28 of the Pension Funds Act and public comments </span> <span><span>Bathandwa</span></span> <span>Fri, 03/05/2021 - 08:27</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2021-03-05T12:00:00Z">05 Mar 2021</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><h3>Amendments to Regulation 28 of the Pension Funds Act to encourage investment in infrastructure: request for public comment deadline</h3> <p>The National Treasury on Friday published draft amendments to Regulation 28 of the Pension Funds Act (“amendments to Regulation 28”) for public comment on its website.</p> <p>Due to technical problems currently being experienced by the Government Printing Works, publication of the Gazette was delayed until 1 March 2021 and backdated 12 February 2021. As a result of this delay, comments on the amendments to Regulation 28 will be accepted until 29 March 2021, as indicated in the media statement that was published on 26 February 2021.</p> <p>Comments are requested with regards to appropriateness of the proposed amendments and the limits in addressing investment in infrastructure. Comments may be sent to Basil Maseko at <a href="mailto:retirement.reform@treasury.gov.za">retirement.reform@treasury.gov.za</a>.</p> <p>Further details on this report can be accessed on the National Treasury’s website: <a href="http://www.treasury.gov.za">www.treasury.gov.za</a>.</p> <p> </p> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-subjects field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More on</div> <div class="field__items"> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/694" hreflang="en">Finance</a></div> </div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/speech-categories/media-statements" hreflang="en">Media Statements</a></div> Fri, 05 Mar 2021 06:27:41 +0000 Bathandwa 804938 at https://www.gov.za https://www.gov.za/news/media-statements/national-treasury-amendments-regulation-28-pension-funds-act-and-public#comments Treasury on closure of SAA operations between Johannesburg and Abu Dhabi https://www.gov.za/speeches/treasury-closure-saa-operations-between-johannesburg-and-abu-dhabi-29-jan-2016-0000 <span> Treasury on closure of SAA operations between Johannesburg and Abu Dhabi</span> <span><span>lebang</span></span> <span>Sat, 01/30/2016 - 13:23</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2016-01-29T12:00:00Z">29 Jan 2016</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The Minister of Finance has granted approval for South African Airways (SAA) to cease operating the route between Johannesburg and Abu Dhabi. SAA commenced the route in March 2015 but it has not performed as expected.</p> <p>SAA’s interventions to improve the financial performance on this route had unfortunately not yielded the desired results, warranting that decisive action be taken to mitigate the negative impact on the airline.</p> <p>SAA operated the route in codeshare with Etihad Airways. Etihad will still be flying between Johannesburg and Abu Dhabi, and offering South African Airways passengers the opportunity to connect to a range of destinations in China, India and Asia as well as in Europe and the Middle East.</p> <p>The National Treasury and the Department of Tourism are certain that the decision will not impact tourism and connectivity. The National Treasury worked closely with the Department of Tourism to weigh the costs and benefits of closing the route and agreed that the closure was in the best interest of both South Africa and SAA.</p> <p>Enquiries:<br />Communications Unit<br />E-mail: <a href="mailto:media@treasury.gov.za">media@treasury.gov.za</a><br />Tel: 012 315 5944</p> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-subjects field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More on</div> <div class="field__items"> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/683" hreflang="en">Aviation</a></div> </div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/speech-categories/media-statements" hreflang="en">Media Statements</a></div> Sat, 30 Jan 2016 11:23:20 +0000 lebang 748474 at https://www.gov.za https://www.gov.za/speeches/treasury-closure-saa-operations-between-johannesburg-and-abu-dhabi-29-jan-2016-0000#comments Treasury on update on South African Airways (SAA) https://www.gov.za/speeches/treasury-update-south-african-airways-saa-16-feb-2016-0000 <span> Treasury on update on South African Airways (SAA)</span> <span><span>lebang</span></span> <span>Tue, 02/16/2016 - 20:04</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2016-02-16T12:00:00Z">16 Feb 2016</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The Minister of Finance has written to the Speaker  of  Parliament requesting a further extension for the tabling of South African Airways’ Annual Report and Annual Financial Statement.</p> <p>Parliament had previously granted SAA an extension up to 15 February 2016. The extension was requested due to the airline’s financial challenges and the company’s external auditors’ concerns regarding its going concern and liquidity position.</p> <p>SAA submitted an application for a going concern guarantee on 21 December 2015 which is under consideration. Given the potential implication for the sovereign and for the economy, the matter requires extensive and careful consideration. SAA is unable to finalise their Annual Financial Statements for the tabling in Parliament until a decision has been made on the going concern application.</p> <p>The Minister has therefore, requested that the tabling of SAA’s AFS be extended to 15 March 2016.</p> <p>Enquiries:<br />Communications Unit<br />E-mail: <a href="mailto:media@treasury.gov.za">media@treasury.gov.za</a><br />Tel: 012 315 5944</p> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-subjects field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More on</div> <div class="field__items"> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/708" hreflang="en">Transport</a></div> </div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/speech-categories/media-statements" hreflang="en">Media Statements</a></div> Tue, 16 Feb 2016 18:04:10 +0000 lebang 748992 at https://www.gov.za https://www.gov.za/speeches/treasury-update-south-african-airways-saa-16-feb-2016-0000#comments Government’s response to rating action of S&P Global ratings (S&P) https://www.gov.za/news/media-statements/government%E2%80%99s-response-rating-action-sp-global-ratings-sp-17-nov-2023 <span> Government’s response to rating action of S&P Global ratings (S&P) </span> <span><span>tsoana</span></span> <span>Mon, 11/20/2023 - 10:10</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2023-11-17T12:00:00Z">17 Nov 2023</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Government notes S&P’s decision to affirm South Africa’s long-term foreign and local currency debt ratings at ‘BB-’ and ‘BB’, respectively, and maintaining the stable outlook.<br /><br />According to S&P, the stable outlook balances South Africa's credit strengths - particularly a credible central bank, a flexible exchange rate, an actively traded currency, and deep capital markets - against infrastructure-related pressures on growth, and downside risks to the fiscal and debt position.<br /><br />The agency also acknowledges that private-sector investment in power generation and renewables is picking up and will support the strengthening of real GDP growth over the medium term.<br /><br />Over the next three years, government will focus on raising GDP growth by improving the provision of electricity and logistics, enhancing the delivery of infrastructure and restructuring the state to be efficient and fit-for-purpose. Fiscal policy continues to support this approach by stabilising debt and debt-service costs. Additionally, fiscal consolidation will be implemented through spending reductions, efficiency measures across government and moderate tax revenue measures<br /> </p> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-subjects field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More on</div> <div class="field__items"> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/694" hreflang="en">Finance</a></div> </div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/speech-categories/media-statements" hreflang="en">Media Statements</a></div> Mon, 20 Nov 2023 08:10:29 +0000 tsoana 825243 at https://www.gov.za https://www.gov.za/news/media-statements/government%E2%80%99s-response-rating-action-sp-global-ratings-sp-17-nov-2023#comments Minister Enoch Godongwana addresses European Union funding and policy dialogue, 18 Mar https://www.gov.za/news/media-advisories/government-activities/minister-enoch-godongwana-addresses-european-union <span> Minister Enoch Godongwana addresses European Union funding and policy dialogue, 18 Mar</span> <span><span>Estelle Greeff</span></span> <span>Thu, 03/14/2024 - 07:27</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2024-03-14T12:00:00Z">14 Mar 2024</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>European Union funding agreement signing and policy dialogue - ‘Financing infrastructure development in the context of climate change’</p> <p>Members of the media are invited to attend the second in a series of Southern Africa – Towards Inclusive Economic Development (SA-TIED) policy dialogues entitled “Financing infrastructure development in the context of climate change”.</p> <p>The occasion will also mark the formal signing of a European Union funding agreement for SA-TIED that is joining the UK Foreign, Commonwealth & Development Office (FCDO) as a funder of the programme.</p> <p><strong>Policy dialogue</strong></p> <p>Recent natural disasters in South Africa have underscored the urgent need for climate-resilient infrastructure. The policy dialogue seeks to answer the question, "In the era of climate change, how can South Africa reimagine its infrastructure development to foster an inclusive, sustainable growth model?” The policy dialogue will focus on the impact of climate change on long-term infrastructure planning, particularly in the energy and water sectors. The Minister of Finance, Mr Enoch Godongwana will give opening remarks.<br /> European Union’s continued support</p> <p>The European Union is delighted to continue to support the SA-TIED programme with a further €2 million. The EU contribution signifies a shared interest and commitment to advancing evidence- based policymaking and testifies to the strong partnership between South Africa and the European Union. The European Union supported the first phase of SA-TIED programme with a contribution of €673 378.</p> <p>Date:18 March 2024<br /> Time: 14h00 – 16h00<br /> Venue: Origins Centre (Wits University west campus) Yale Road & Enoch Sontonga Ave Johannesburg, 2050</p> <p>Please register for the event <a href="https://sa-tied.wider.unu.edu/article/financing-infrastructure-development-in-the-context-of-climate-change">here</a>.</p> <p>Media enquiries:<br /> Abena Larbi-Odam<br /> E-mail: <a href="mailto:abena.larbiodam@wider.unu.edu">abena.larbiodam@wider.unu.edu</a></p> <p>Cleopatra Mosana<br /> Email: <a href="mailto:media@treasury.gov.za">media@treasury.gov.za</a></p> </div> <div class="field field--name-field-speech-event-category field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Event Category</div> <div class="field__item"><a href="https://www.gov.za/event-category/government-activities" hreflang="en">Government activities</a></div> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/taxonomy/term/950" hreflang="en">Media advisories</a></div> Thu, 14 Mar 2024 05:27:45 +0000 Estelle Greeff 827649 at https://www.gov.za https://www.gov.za/news/media-advisories/government-activities/minister-enoch-godongwana-addresses-european-union#comments Minister Enoch Godongwana tables Medium Term Budget Policy Statement, 26 Oct https://www.gov.za/news/media-advisories/government-activities/minister-enoch-godongwana-tables-medium-term-budget-2 <span> Minister Enoch Godongwana tables Medium Term Budget Policy Statement, 26 Oct</span> <span><span>Vuyelwa</span></span> <span>Mon, 09/12/2022 - 10:48</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2022-09-12T12:00:00Z">12 Sep 2022</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The Minister of Finance, Mr Enoch Godongwana, will table the Medium Term Budget Policy Statement in Parliament on Wednesday, 26 October 2022 at 14:00.<br /><br />The Medium Term Budget Policy Statement sets government policy goals and priorities, forecasts macroeconomic trajectory and projects the fiscal framework over the next three years by outlining spending and revenue estimates, among others.<br /><br />A media engagement session on the MTBPS logistics will be held this week. Details will be communicated to all media.</p> </div> <div class="field field--name-field-speech-event-category field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Event Category</div> <div class="field__item"><a href="https://www.gov.za/event-category/government-activities" hreflang="en">Government activities</a></div> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/taxonomy/term/950" hreflang="en">Media advisories</a></div> Mon, 12 Sep 2022 08:48:54 +0000 Vuyelwa 816003 at https://www.gov.za https://www.gov.za/news/media-advisories/government-activities/minister-enoch-godongwana-tables-medium-term-budget-2#comments Minister Enoch Gondongwana: National Treasury Dept Budget Vote 2022/23 https://www.gov.za/news/speeches/minister-enoch-gondongwana-national-treasury-dept-budget-vote%C2%A0202223-18-may-2022 <span> Minister Enoch Gondongwana: National Treasury Dept Budget Vote 2022/23</span> <span><span>Londekile</span></span> <span>Wed, 05/18/2022 - 16:12</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2022-05-18T12:00:00Z">18 May 2022</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><h3>Remarks by the Minister of Finance, Enoch Gondongwana; Budget vote 8 speech</h3> <p>Honourable Speaker/House Chairperson,<br />Chairperson of Standing Committee of Finance, Honourable Joe Maswanganyi, and the committee members,<br />Chairperson of Select Committee of Finance, Honourable Yunus Carrim, and the committee members,<br />Honourable Members,<br />Thank you for this National Assembly mini-plenary sitting on the Budget Vote debate for the National Treasury.</p> <p><strong>Introduction</strong></p> <p>It is an honour to stand before you, and before the country, to deliver this year’s budget vote for the National Treasury.</p> <p>Honourable Speaker, it is evident that this year will demand of us to face enormous obstacles, some old and many new.</p> <p>As the pandemic continues to create global uncertainty and devastating economic impact locally, we will need to show great resilience and tenacity in harnessing our efforts to resolutely and consistently overcome the systemic challenges of inequality, poverty and unemployment exacerbated by chronic low growth, rapid climate change and intensification of conflicts, contestations and ambiguity.</p> <p>For National Treasury, this will require a determined effort in pursuing our ongoing endeavours to accelerate a growth economy including tackling structural constraints, applying measures to restore investor confidence and public trust, safeguarding the fiscal framework, reducing policy uncertainty and lowering the cost of doing business.</p> <p>We have many hard choices to make. Many more difficult decisions lie ahead of us. We are not out of the woods. We cannot afford to be complacent.</p> <p>Our policy interventions must reflect the seriousness of the challenges we face and our constitutional responsibility to forge a better today and a prosperous tomorrow for our people.</p> <p>We must meet doubt and uncertainty with decisiveness!</p> <p>There are risks and there are opportunities on the path ahead. We must be prepared for both.</p> <p><strong>National Treasury remains strategically steadfast</strong></p> <p>The unprecedented crises that the country has found ourselves in have called on National Treasury and its wide-spanning programmes, to develop unique responses and this year’s ambitious plan will build on the positive results achieved, as we deliver along with government and all other stakeholders on the national reconstruction and recovery plan, supporting economic reform and realising transformation and inclusion.</p> <p>Striking a balance between supporting livelihoods and repairing our public finances.</p> <p>National Treasury will continue to support government’s ability to ensure stable, sustainable growth and equitable and efficient allocation of public resources.</p> <p>We will continue to pursue a balanced and prudent fiscal strategy in order to stabilise the public finances.</p> <p>Although public finances remain under some strain, the fiscal position has improved somewhat in comparison to this time last year. We cannot let our guard down as we remain on course to restoring the health of public finances.</p> <p>To this end the recommendations arising out of the spending reviews will be implemented to improve expenditure efficiency and programme delivery impact over the medium term.</p> <p>National Treasury is responsive to our changing environment and continuously considers improvements to the budget process to deliver on our national priorities and foresee future needs. In this regard work is being done on climate tagging as well as climate budget tagging, which is a tool for monitoring and tracking of climate-related expenditures in the national budget system. It provides comprehensive data on climate-relevant spending, enabling government to make informed decisions and prioritize climate investments.</p> <p><strong>Driving the engine of the economy at the coalface of service delivery</strong></p> <p>National economic growth is anchored in strong local economies which are reliant on an effective local government.</p> <p>As a country we are faced with the formidable challenge of an increasing number of municipalities which are dysfunctional, either experiencing financial distress or even having deteriorated into crisis.</p> <p>National Treasury will be harnessing, together in partnership with DCOG, all of our local government support mechanisms to intensify targeting interventions for increased impact from our extensive capacity building under the Accountant General, programmes to improve municipal audit outcomes with a specific target on those with the highest levels of irregular, fruitless and wasteful expenditure to direct intervention in terms of Section 139(7) of the Constitution such as Lekwa and more recently Manuguang and Enoch Mgijima.</p> <p>There are 43 municipalities that meet the criteria to be placed under mandatory intervention. I have already written to the Premiers of all provinces in October last year identifying these municipalities and that the mandatory intervention process must begin in earnest.</p> <p>Nursing our municipalities back to financial health will boost the quality of life of residents, it will encourage economic activity and investment, and it will encourage tax and ratepayers to pay for services.</p> <p><strong>Advancing Inclusive Growth and Realising Transformation</strong></p> <p>National Treasury will in partnership with local government, implement 5 township economic development strategies as well as identify and approve 20 catalytic projects in spatially targeted areas within metropolitan cities, secondary cities and rural towns to provide technical support to strengthen infrastructure planning, delivery capacity and to support spatial transformation and inclusive developments.</p> <p><strong>Renewing trust in public entities</strong></p> <p>Government will continue to finance the gross borrowing requirement while minimising refinancing risk, currency risk and overall borrowing costs. To reduce their continuing demands on South Africa’s public resources, the National Treasury will outline criteria for government funding of SOCs. Eskom is faced with a large amount of debt that remains a challenge to service without assistance. The National Treasury is working on a sustainable solution to deal with Eskom’s debt in a manner that is equitable and fair to all stakeholders. The work on the review of governance systems of several high risk state-owned entities is underway.</p> <p><strong>Regulatory and structural reforms driving fairness, accessibility and accountability</strong></p> <p>In order to implement the tax proposals announced in the Budget, National Treasury will propose its annual amendments to tax legislation that seek to meet government’s revenue requirements and eliminate tax loopholes.</p> <p>Work will continue to secure financial stability which supports economic growth, and also ensures better access to the financial sector for all residents and those doing business with South Africa. Regulating the financial sector will continue in order to ensure it is safe and provides enhanced customer services.</p> <p>The Bounce Bank Support Scheme for businesses signalled in the February 2022 Budget Speech has come into effect. The Bounce-Back Scheme comprises of two mechanisms. The first mechanism is a loan guarantee which facilitates loans guaranteed by government to eligible businesses. </p> <p>The loans will assist eligible businesses in recovering from constraints in accessing finance due to COVID-19 lockdowns, the July 2021 civil unrest as disasters like the floods affecting KZN. The Bounce-Back Scheme will also support economic growth and foster job creation in South Africa. </p> <p>Funds borrowed from this Scheme, through participating banks, Development Finance Institutions (DFIs) and non-bank Small Medium Enterprise (SME) finance providers, can be used for growth and expansion and to foster job creation within South Africa.</p> <p>Our Twin Peaks regulatory system, established in 2018, is beginning to bear fruit, to not only ensure that our financial institutions are financially healthy at all stages, but also where problems have been identified actions are immediately taken. </p> <p>For this very reason, I have been dealing with the concerns of the Prudential Authority that Ubank’s capital adequacy levels have been deteriorating over the last 18 months, and the inability of the Board and its shareholders to adopt and implement an action plan to reverse this decline. </p> <p>While these engagements began under my predecessors they have intensified to weekly meetings since March 2022, and daily meetings over the past week. </p> <p>This intensification was triggered by Ubank’s capitalisation falling below minimum regulatory requirements. The PA’s engagement with the Board over the last months and weeks has, despite providing them with more time to respond satisfactorily with a credible action plan, resulted in a lack of alignment between the Board and its ownership trustees, and accelerated the need, and timing, of the curatorship.</p> <p>On the recommendation of the CEO of the Prudential Authority, Deputy Governor Tshazibana, and acting in terms of section 69 of the Banks Act 94 of 1990, I have deemed it to be necessary and in the public interest to approve that UBank be placed under curatorship, effective from Monday 16 May 2022. Curatorship is a mechanism to provide regulators additional tools to save the bank, not to close it, and as such curatorship will assist in preserving depositor funds that are held by the institution, and will allow for its resolution to be done in a controlled and structured manner.</p> <p>Over the last three years we have seen a steady improvement at SARS, which has contributed to the necessary improvement in our fiscal position by way of improved revenue collections and coordination of cash-flow management in conjunction with the National Treasury resulting in improved public debt management.</p> <p>In a democratic system, taxation is a critical part of the social contract between the State and the citizens. Tax legitimacy and perceptions of fairness in the distribution of the tax burden are crucial to the willingness of citizens to pay taxes. Therefore, it is of utmost importance to adhere to the principles of a good tax system namely of efficiency, equity, simplicity, transparency and certainty, as well as ensuring a buoyant tax system that responds to the business cycles of the economy.</p> <p>SARS will continue to expand the tax register, respond to illicit trade by removing illegal imports from circulation, investigate syndicate tax and customs crimes as well as investigate and hand State Capture related cases over to the NPA.</p> <p><strong>Building on our success and learning from challenges</strong></p> <p>We are actively advocating coherent economic policy. National Treasury is reviewing the government’s macroeconomic policies, from the global financial crisis of 2008 to 2020. The review examines how key indicators have evolved as well as assesses the implementation of policy. Policy recommendations emanating from the review will be engaged with stakeholders and would be communicated through The Budget process.</p> <p>Through Operation Vulindlela, in partnership with the Presidency, there are decisive interventions to address structural problems cited as contributing towards constraints on economic growth.</p> <p>In particular, we are supporting government to address inefficiency and the high cost of network services – including electricity, water, transport and telecommunications – that work against our goal of reducing the cost and improving the ease of doing business.</p> <p><strong>Reinforcing our commitment to ethical government</strong></p> <p>A priority for National Treasury is to strengthen the transparency, efficiency, effectiveness and impact of public procurement by introducing the long awaited Public Procurement Bill, strengthening procurement decision-making responsibility and management at all public departments and institutions, and most importantly, to modernise the procurement system. This will strengthen data collection, enhancing analysis allowing for better reporting and subsequently increasing monitoring both by government and the public parties.</p> <p>We received over 4000 submissions on the revised Public Procurement Bill and these have all been considered along with the recommendations by the several recent Commissions of Enquiries. Consultations with Nedlac commenced on 6 May 2022 as the Bill progresses towards tabling in Parliament this financial year.</p> <p>Work is continuing at a pace on the PFMA and MFMA reforms and support measures as well as accelerating the implementation of the government’s integrated financial management system with roll out of modules both in pilot departments and provinces this year.</p> <p>In addition to strengthening legislative frameworks, capacity, capabilities, systems and processes of financial governance and management National Treasury will continue to play our role in fighting corruption and maladministration by conduct forensic audits, special performance audits and review of internal controls.</p> <p><strong>Leveraging infrastructure, growing our economy</strong></p> <p>We are also committed to supporting infrastructure development and the growth of economically integrated cities and communities. Treasury will continue to facilitate conditional grants, providing financial incentives for infrastructure planning and development to municipalities. This will be achieved through the Local Government Financial Management Grant; the Neighbourhood Development Partnership Grant; the Programme and Project Support Grant; and the Infrastructure Skills Development Grant. Transfers to these grants are projected to amount to R6.9 billion over the next three years.</p> <p>Reaping the rewards of international participation</p> <p>Through the international engagement with Multilateral Development Banks (MDBs) and International Finance Institutions (IFIs), South Africa will continue to foster collaboration, source technical best practice, as well as source competitive financing as part of our borrowing strategy. Five-year Country Partnership Strategies with the MDBs will focus on fostering competitiveness, fostering investment, supporting SMMEs, creating jobs and economic recovery.</p> <p>Madame Speaker, the department’s budget over the next three years is R2.8 trillion. Close to 60 percent, or R1.7 trillion, is for transfers to provincial governments for the provincial equitable share.</p> <p>A large portion of these funds will be disbursed to the provincial equitable share for adjustments related to compensation of employees in provincial departments, inflationary adjustments for non-governmental organisations within provincial departments of social development, and for the implementation of the presidential employment initiative in provincial departments of education.</p> <p>Debt-service costs amount to 34.4 percent, or R1 trillion, of the department’s budget over the MTEF period. With an additional R3 billion, a total of R34.3 billion has been allocated to the South African Revenue Service, to build the capacity of human resources and implement ICT projects.</p> <p>The South African Special Risk Insurance Association (SASRIA) has been key to our response to the civil unrest in KwaZulu Natal and Gauteng last year, and we have an obligation to ensure that it can honour its financial obligations. The 2021/22 expenditure also includes the R18.1 billion paid to SASRIA as a direct charge from the Revenue Fund. In aggregate, SASRIA has received a total of R22 billion in the 2021/22 financial year.</p> <p><strong>Conclusion</strong></p> <p>Speaker, allow me to conclude by reiterating that we are at an inflection in our life as a society, and as an economy.</p> <p>We are at a point of great uncertainty, but also at a moment of great opportunity.<br />We are required to make some tough decisions. The moment demands that we stick to the policy course of balancing support for the most vulnerable households, with the careful rehabilitation of our public finances.</p> <p>Lastly, I would like to thank my outgoing Director-General, Mr Dondo Mogajane. He has served the National Treasury, and his country, with distinction and integrity. Our democratic project, and the institutions that are the bedrock of a fair and prosperous society, rely on individuals like Mr Mogajane – individuals who are willing to dedicate themselves selflessly to a greater good.<br /><br />Our continued gratitude goes to the Chairpersons of our oversight committees. We look forward to your continued support and guidance.</p> <p>I thank you.</p> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-subjects field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More on</div> <div class="field__items"> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/684" hreflang="en">Budget: national</a></div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/706" hreflang="en">Economy</a></div> </div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/speech-categories/speeches" hreflang="en">Speeches</a></div> Wed, 18 May 2022 14:12:40 +0000 Londekile 813554 at https://www.gov.za https://www.gov.za/news/speeches/minister-enoch-gondongwana-national-treasury-dept-budget-vote%C2%A0202223-18-may-2022#comments Minister Malusi Gigaba congratulates Advocate Xolisile Jennifer Khanyile on her appointment as Director of the Financial Intelligence Centre https://www.gov.za/news/media-statements/minister-malusi-gigaba-congratulates-advocate-xolisile-jennifer-khanyile-her <span> Minister Malusi Gigaba congratulates Advocate Xolisile Jennifer Khanyile on her appointment as Director of the Financial Intelligence Centre</span> <span><span>lebang</span></span> <span>Fri, 12/22/2017 - 07:26</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2017-12-21T12:00:00Z">21 Dec 2017</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The Minister of Finance, Malusi Gigaba, has congratulated Advocate Xolisile Jennifer Khanyile on her appointment as the Director of the Financial Intelligence Centre (FIC). Advocate Khanyile’s appointment will be effective from the first of January 2018.<br /><br />“The Financial Intelligence Centre plays a key role in ensuring that the financial system has integrity. We also believe that Advocate Khanyile will work with other industry stakeholders to ensure that transparency is improved in South Africa’s financial system in order to support higher economic growth. We wish her well in her new role,” Minister Gigaba said.<br /><br />The FIC collects information and analyses suspicious transactions as may be reported by financial or non-financial institutions like gambling bodies, estate agents, and lawyers. The FIC works together with other regulators and provides information to law enforcers to combat money laundering and terrorist financing.<br /><br />Advocate Khanyile holds a B Juris Degree from the University of Zululand, an LLB from the University of Zululand, and a MDP - Management Development Programme from the University of the Free State Business School. Positions Advocate Khanyile has held include: Director of Public Prosecutions in the Free State; acting Director of Public Prosecutions in South Gauteng; Senior Deputy Director of Public Prosecutions in the NPS; and Deputy Director of Public Prosecutions in the Asset Forfeiture Unit, among others.<br /><br />Enquiries:<br />Communications Unit<br />Email: <a href="mailto:media@treasury.gov.za">media@treasury.gov.za</a><br />Tel: 012 315 5944</p> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-subjects field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More on</div> <div class="field__items"> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/725" hreflang="en">Governance</a></div> </div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/speech-categories/media-statements" hreflang="en">Media Statements</a></div> Fri, 22 Dec 2017 05:26:43 +0000 lebang 775997 at https://www.gov.za https://www.gov.za/news/media-statements/minister-malusi-gigaba-congratulates-advocate-xolisile-jennifer-khanyile-her#comments Minister Malusi Gigaba invites public to give tips for National Budget speech 2018 https://www.gov.za/news/media-statements/minister-malusi-gigaba-invites-public-give-tips-national-budget-speech-2018 <span> Minister Malusi Gigaba invites public to give tips for National Budget speech 2018</span> <span><span>lebang</span></span> <span>Mon, 02/05/2018 - 11:21</span> <div class="field field--name-field-gcis-speech-date field--type-datetime field--label-hidden field__item"><time datetime="2018-02-05T12:00:00Z">05 Feb 2018</time></div> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><h3>2018 National Budget tips make your opinon known and ideas heard</h3> <p>The Minister of Finance, Malusi Gigaba, will deliver his maiden Budget Speech amid subdued economic growth and a challenging fiscal situation. It is in this context that the Minister encourages South Africans to share their views about the country’s economic conditions and other issues they would like government to highlight in the Budget, which will be tabled in parliament on 21 February 2018.<br /><br />The Minister invites South Africans to share their views on:</p> <ul><li>Funding of free education for students in tertiary institutions;</li> <li>How South Africa can achieve inclusive economic growth;</li> <li>How South Africa can use its resources to ensure efficiencies; and</li> <li>How the government, civil society, unions and business can work together for the purpose of achieving South Africa’s economic objectives.</li> </ul><p>The Minister looks forward to your contribution which can be sent through the following ways:</p> <ul><li>Tweet your tips and include the hashtag #BudgetTips2018, and Follow @TreasuryRSA</li> <li>The National Treasury website: Budget 2018 TIPS</li> </ul><p style="margin-left:5.6pt;"><br />Enquiries: Communications Unit Email:<br />E-mail: <a href="mailto:media@treasury.gov.za">media@treasury.gov.za</a><br />Tel: 012 315 5676</p> </div> <div class="field field--name-field-issued-by-source field--type-entity-reference field--label-inline clearfix"> <div class="field__label">Issued by</div> <div class="field__item"><div> <div class="field field--name-field-website-url field--type-link field--label-hidden field__item"><a href="https://www.treasury.gov.za/" target="_blank">National Treasury</a></div> </div> </div> </div> <div class="field field--name-field-department field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More from</div> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/902" hreflang="en">National Treasury</a></div> </div> <div class="field field--name-field-gcis-speech-subjects field--type-entity-reference field--label-inline clearfix"> <div class="field__label">More on</div> <div class="field__items"> <div class="field__item"><a href="https://www.gov.za/taxonomy/term/694" hreflang="en">Finance</a></div> </div> </div> <div class="field field--name-field-gcis-speech-category field--type-entity-reference field--label-hidden field__item"><a href="https://www.gov.za/speech-categories/media-statements" hreflang="en">Media Statements</a></div> Mon, 05 Feb 2018 09:21:47 +0000 lebang 776795 at https://www.gov.za https://www.gov.za/news/media-statements/minister-malusi-gigaba-invites-public-give-tips-national-budget-speech-2018#comments