For Immediate Release

30 October 2024

The ANC Parliamentary Caucus is looking forward to the Medium-Term Budget Policy Statement which is critical in projecting the macroeconomic policy trajectory of the country and the fiscal framework.

We believe that government must use fiscal policy effectively to reduce unemployment, poverty and inequality. It must strengthen local government, infrastructure build and maintenance projects and increase investment in the South African economy.

Government must coordinate macroeconomic policy more effectively with industrial policy so that fiscal and monetary policy support industrialisation.

The ANC Caucus affirms the government’s commitment to deal with the high cost of living that puts many families in financial distress. While we welcome the recent relief in petrol prices, aided by a stronger rand, we recognise the need for broader interventions. We expect the Minister of Finance to address the burden of high food prices, and to speak on the need to expand the basket of zero-rated goods, targeting essential items to bring immediate relief to struggling families.

We hope the Minister will announce measures to strengthen our economy to serve the needs of the people and deliver lasting relief.

We believe government agencies such as the Competition Commission must look into supply chains to prevent exploitative pricing on basic goods and to ensure access to affordable essential goods and services for all citizens. These measures should be part of a broader strategy to tackle poverty and hunger, reinforce job creation and drive economic inclusivity.

It is worth noting that as a country and world, we are still recovering from the impact of the coronavirus pandemic, which resulted in the loss of over 2.2. million South African jobs and impacted many companies and households.

We welcome the signs of recovery and declining inflation rate, which have led to the South African Reserve Bank lowering the repo rate by 25 basis points. The decline in the Consumer Price Index to 3.8% in September was well below the projected 4.9% by the National Treasury.

The ANC expects the MTBPS to prioritise stimulating growth of the real economy and create employment, ensure fiscal sustainability by containing the government debt while protecting social spending, and tackle the challenges impacting the people to improve their quality of life through effective basic service provision and advancing social transformation.

Issued by the Office of the Chief Whip, Cde Mdumiseni Ntuli

For enquiries, please contact:

Hlengiwe Hadebe

Media Liaison Officer

+27 64 147 3276