ANC secretary-general Fikile Mbalula addressed a press conference in Cape Town ahead of Finance Minister Enoch Godongwana’s tabling of the medium-term budget policy statement.

• The ANC wants its government to address the challenges in Eskom and Transnet.
• ANC secretary-general Fikile Mbalula has detailed the governing party’s wishes ahead of Finance Minister Enoch Godongwana’s tabling of the medium-term budget policy statement.
• The ANC also wants better spending on social programmes and for frontline services not to be affected.

ANC secretary-general Fikile Mbalula has called for a sensible reduction in government spending and reallocating resources towards growth-oriented reforms – most notably to Eskom and Transnet.

On Wednesday, Mbalula addressed a press conference in Cape Town ahead of Finance Minister Enoch Godongwana’s tabling of the medium-term budget policy statement.

To fuel economic growth, Mbalula said, the government must implement reforms in the rail, ports and electricity sectors.

“It is critical to support Transnet as it maintains its network, prioritises rolling stock repairs and improves operational efficiencies in ports, pipelines and freight rail. The ANC urges the government to continue improving Eskom’s performance to reduce load shedding and enhance energy security.

“The government must accelerate plans to restructure Eskom, resolve issues of crippling debt and roll out new electricity generation capacity as quickly as possible. Furthermore, it is necessary to mobilise finance for expanded investment in the national electricity grid and support local government in developing new funding models for electricity services,” he said.

News24 has previously reported that the fiscal year-to-date government spending hit R1.04 trillion by September – almost R100 billion more than a year ago, according to data from National Treasury. There’s also the fact that year-to-date expenditure exceeded revenue by more than R250 billion.

The government’s wage bill, Eskom’s debt, Transnet’s woes and welfare grants are some of the biggest spending items and not much can be done about them unless the state risks riots by cutting jobs, privatising the likes of Eskom, Transnet and Denel, and ends what began as a Covid-19 grant but has become a permanent fixture on the budget.

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Furthermore, Mbalula has also said public and private resources should be mobilised towards investing in and improving service delivery.

“High budget deficits may have unintended consequences in the short to medium term, which must be avoided. The government should also focus on promoting exports and foreign investment, which will help to generate much-needed foreign exchange and boost economic growth,” he said.

According to Mbalula, the ANC believes that increased spending on health and education is necessary to achieve better outcomes and promote a fairer, more inclusive society.

“Priority must be given to poor and working-class households, and we must plan to cushion South Africans from cost-of-living increases to counteract inflation. The government should also prioritise social protection programmes that support vulnerable groups, especially during [times of] economic stress,” he said.

Mbalula also believes fiscal reprioritisation is necessary to respond to lower tax collections and rising debt service costs.

“However, it is imperative to ensure that these reductions do not affect the frontline delivery of services. The curbing of capital and infrastructure spending is concerning, as it reduces potential growth and the ability to grow in a manner that mitigates the impact of rising debt service costs on the broader fiscal,” he said.