Under the leadership of President Cyril Ramaphosa, the sixth administration has achieved the first primary budget surplus in 15 years, said the Government Communication and Information System (GCIS).
The last time government had a budget surplus was before the 2008 global financial crisis.
“This commendable achievement was attained due to the support the National Treasury received from the President, the Minister of Finance, and the Cabinet of the sixth administration despite many challenges that confronted the national fiscus,” the GCIS said in a statement on Saturday.
These challenges include the economy that had to recover from the global economic crisis, State Capture, prolonged financial constraints due to the COVID-19 pandemic, and the civil unrest of July 2021.
“The sixth government administration put in place prudent fiscal measures aimed at mitigating the country's dire economic situation, including the implementation of cost-cutting measures within the government, fewer bailouts to state-owned entities, strong monitoring of key performance measures to improve their performance, and the deployment of multi-disciplinary intervention teams that included the private sector where applicable.
“State-owned enterprises were propelled to impactful turn-around plans implementation, which has resulted in green shots in self-sustaining business models. Critical economic growth drivers, such as infrastructure development, received necessary support and focus. Under President Ramaphosa's leadership, the government engaged regularly with business and labour leaders, whose input is crucial to the economic growth conversation,” the GCIS said.
Government said that as the seventh administration begins its work; it does so with the advantage of a budget surplus, which will support the implementation of outstanding goals of Vision 2030 – the National Development Plan.
The government reiterated the importance of collaboration to achieve faster economic growth through job creation and public-private partnerships, among other strategies. –SAnews.gov.za
