Gordhan Holds Budget Line as Conflict With Zuma Simmers
- Treasury sticks to deficit targets, trims spending ceiling
- Finance chief says growth prerequisite for transformation
South Africa FM Gordhan Proposes 45% Tax on Wealthy
South African Finance Minister Pravin Gordhan held his ground in a feud with President Jacob Zuma over control of the nation’s finances as he stuck to deficit targets and warned his detractors not to “mess” with the National Treasury.
In the budget presented Wednesday, Gordhan allocated no new money for nuclear power plants favored by Zuma, and stressed the need for the state to focus on fiscal prudence, reducing waste and reviving an economy that’s set to expand 1.3 percent this year. The National Treasury trimmed its expenditure ceiling by 26 billion rand ($1.98 billion) over the next two fiscal years and pledged to narrow the budget deficit to 2.6 percent in the year through March 2020, from 3.4 percent this year.