Finance Minister Trevor Manuel on Wednesday dismissed suggestions that recent political developments within the African National Congress (ANC) made the drafting of the 2008 budget difficult.
“I never had any concerns on whether there will be difficulties in these areas,” he said.
Briefing the media at Parliament before his budget speech, Manuel said he was not concerned about a possible fall-out as the budget was a reflection of the government’s thinking — which was not in contradiction to that of the ANC.
“There would not have been any concerns because there is no contradiction from the Polokwane resolutions and what is in the budget.
“If you look at our policies, then you will not be concerned about doomsayers who believe there is this huge gape between those of us in government and the ANC,” he said.
Manuel said the budget, which he described as “strong in every sense” was proof that the country was not in a crisis.
He cited the reduction of corporate tax; the softening of tax regulations on small businesses and the increase in spending, as a strong signal that the government was on top of the economic situation.
“We are confident in the choices we make because we made the right decisions early,” he said.
However, Manuel conceded that the increase in oil and food prices, and the current global economic climate, would slow down the country’s economic growth.
“We are delivering this budget at a time when there is a lot of concern in the global economy,” he said. – Sapa
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