MPs continue criticism of Godongwana's MTBPS, SA's low growth prospects

Members of Parliament have continued their criticism of Minister Enoch Godongwana’s medium-term budget policy statement, especially the country’s low growth prospects.

Godongwana’s meetings with the international markets and major US banks, like JP Morgan, without reaching out to local social partners, also come into focus.

Godongwana and the National Treasury were engaging MPs before a joint meeting of Parliament’s finance and appropriation committees from the National Assembly and National Council of Provinces (NCOP) on Friday.

Minister Godongwana was back in Parliament just a day after his medium-term budget, where he projected a lower GDP growth projection of 1.2%.

This remains a serious concern for members who’ve questioned the point of doing growth projections that are never met.

ActionSA MP Alan Beesley: "For me, the massive disappointment with this budget which is the GDP growth. I was very surprised to see the GNU stand and applaud 1.2% GDP growth."

Economic Freedom Fighters (EFF) MP Omphile Moatwe said that Godongwana chose to consult with major international banks instead of local structures.

"You have a couple of secret meetings that you held but the social partners and democratic structures in this country have not been consulted. Did you and National Treasury consult the National Economic Development and Labour Council (NEDLAC)?"

On the growth projections, Director-General Duncan Pieterse said that global growth was sitting at a below-average 3.2% in 2025 and South Africa operates in the same global markets when it comes to demand for exports.