Cabinet confident budget allocations will translate into economic gains

Cabinet has expressed its unwavering confidence that the allocations as outlined in the National Budget will pave the way for substantial economic growth, contributing to the restoration and enhancement of South Africa’s economic position.

During a post-Cabinet briefing on Thursday, Minister in the Presidency Khumbudzo Ntshavheni, said Cabinet has welcomed the 2024 National Budget, which demonstrated the resolute commitment by government to consistently manage the country’s economy and take tough decisions necessary to balance the deficit while promoting economic growth.

‘The consolidation and tabling of the 2024 National Budget is an important part of South Africa’s open and accountable system of democracy.

‘Cabinet is confident that the National Budget allocations will translate into economic gains that rebuild our economic standing,’ Ntshavheni said.

The Minister emphasised that the National Budget continues to drive critical priorities and support for the most vulnerable.

‘It provides social assistan
ce to improve the living conditions of poor, vulnerable and underprivileged South Africans. These include unemployed South Africans and orphaned and vulnerable children living in child headed households,’ she said.

Public-Private Partnership

Cabinet has also welcomed the first-of-its-kind public-private partnership agreement between Sasol and Transnet Freight Rail to improve the reliability of rail transport.

Under a five-year agreement, Transnet Freight Rail will use its fleet of 128 ammonia tankers to deliver ammonia from Sasol facilities to customers and in return Sasol will fund the maintenance and repair programme of the fleet.

‘The partnership advances work on the country’s Freight Logistics Roadmap to turn around the sector. This partnership demonstrates how together we can overcome our pressing challenges,’ Cabinet said.

Quarterly Labour Force Survey (QLFS)

On Statistics South Africa’s recent Quarterly Labour Force Survey (QLFS), Minister Ntshavheni said government is motivated to redouble its e
fforts to draw more people into work opportunities.

The Quarterly Labour Force Survey showed a slight rise in the country’s unemployment rate in the fourth quarter of 2023 to 32.1% from 31.9% in the third quarter.

‘While our economy continues to create jobs, it is not at the level that government aims to achieve in order to address the challenge of unemployment. The QLFS showed that the informal sector employment increased by 124 000, finance by 128 000 jobs, transport by 57 000, mining by 37 000 jobs and private households by 18 000 jobs.

‘Cabinet has called on all sectors to support the Economic Reconstruction and Recovery Plan, which is helping to provide work and livelihood opportunities to millions of South Africans,’ the Minister said.

Source: South African Government News Agency