Malusi Gigaba makes first appearance before MPs‚ pledges cash will not be wasted by government departments

Treasury had to be a strong institution if it was to meet its socio-economic mandate‚ Finance Minister Malusi Gigaba said in Parliament on Tuesday.

The minister also said in his first meeting with members of Parliament's standing committee on finance that Treasury would be the "enforcer" across government in terms of the implementation of the fiscal consolidation that was required by the current environment.

Government would have to make do with less resources.

Treasury would be managing fiscal consolidation in a prudent manner while at the same time playing a redistributive role. "In the current situation we are in we need to be responsible and act conscientiously‚" Gigaba said.

Gigaba said Treasury would have to support structural reforms to diversify‚ grow and transform the ownership patterns of the economy and to broaden the tax base. It would strive to increase revenue so that government could finance its expenditure plans for the year.

Gigaba once again emphasised the urgent priority of accelerated inclusive growth.

He expressed optimism about SA's growth prospects and that the economy would continue to grow this year albeit slowly. At the same time Treasury would be focused on reducing debt funded consumption.

He reiterated that Treasury would be working hard with government's social partners to avoid another credit ratings downgrade and to restore the previous ratings. Investor confidence had to be boosted to draw in investment and boost growth.

Gigaba noted that the outcome of the French elections had served to calm the markets in rejecting nationalistic populist policies which would have resulted in greater protectionism and reduced trade‚ especially with Africa.