Gordhan says South Africa not on the path to austerity
South Africa’s recent budget was not aimed at implementing austerity measures and would not go the same path taken by some countries in Europe,
the finance minister said on Thursday.
Gordhan’s pledge to narrow the budget deficit to 2.4% of GDP by 2018/19 was aimed at placating ratings agencies that had warned of downgrades.
“We are nowhere near austerity. We haven’t cut anybody’s pension, we haven’t raised the retirement age, haven’t cut any jobs in the public sector. Austerity as it was applied in parts of Europe is not what we are trying to do here,” Finance Minister Pravin Gordhan said at a business conference.
Gordhan said Treasury officials would meet investors in London, Boston and New York next week in a non-deal roadshow meant to clarify South Africa’s economic plans. “(We will) explain the budget to them and the kind of direction that we want to go in,” Gordhan said.