Government is set to revise a\u00a0medium-term budget initially proposed by axed finance minister Nhlanhla Nene, in October, because the economic situation has worsened since then.<\/p>\n
This is according to City Press, which noted that\u00a0 this revision is “a big departure from the transparent practice of getting inputs from Parliament and extraparliamentary lobby groups such as civil society, unions, business and other interested parties”.<\/p>\n
In December 2015, president Jacob Zuma infamously sacked finance minister Nhlanhla Nene, replacing him with unknown ANC back-bencher, David van Rooyen.<\/p>\n
This led to a collapse in the market, pushing the rand to record lows against the dollar – from which it is yet to recover.<\/p>\n
Current Finance Minister Pravin Gordhan, who was reappointed following a market collapse, days after van Rooyen’s appointment,\u00a0 said that the the country’s economic plans would become clearer once President Zuma delivered his state of the nation address on
\nFebruary 11 and following presentation of the 2016\/17 budget two weeks later.<\/p>\n
\u201cIf the numbers need to change, then the numbers will change as we go forward, because we recognise that since the [budget statement], circumstances have changed, both globally and within South Africa itself,\u201d Gordhan said.<\/p>\n
The minister said the revision was necessary.<\/p>\n
\u201cIt\u2019s quite clear we need to take account of the new environment in which we find ourselves, and make sure we tailor our expenditure and revenue decisions in line with the circumstances,\u201d he said.<\/p>\n
How to fix South Africa\u2019s economy: fire Zuma<\/a><\/strong><\/p>\n