Vice President and Finance minister, Ndaba Gaolathe, told the Youth Budget pitso last Thursday that the measures were necessary to safeguard the economy against future shocks and mitigate the risks of unsustainable public debt levels. “Central to this agenda will be efforts to rebuild fiscal buffers and implement robust expenditure management to ensure sustainability,” he said. “By striking this balance, the government aims to create a resilient economy that is better prepared to navigate uncertainties while maintaining a clear focus on long-term growth and stability,” he added. The measures will also include accelerating reforms of State-Owned Enterprises (SOEs) and implementing additional cost-containment measures.
Additionally, government intends to boost domestic resource mobilisation efforts, an effort that usually includes broadening the tax base and tightening revenue collections. Gaolathe said to enhance spending discipline and achieve fiscal sustainability, government was committed to revamping its fiscal strategy of safeguarding resources for future generations by spending less and saving more, ultimately building sustainable financial assets and replenishing fiscal buffers. “Government will stimulate revenue growth by exploring alternative sources of income as well as develop sustainable financial assets to restore the Government Investment Account to levels that can effectively absorb future economic shocks. “This dual approach aims to enhance the country's economic resilience and lay the foundation for long-term stability and growth,” he said.
