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S. African business community welcomes medium-term budget
Last Updated: 2018-10-26 15:17 | Xinhua
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Business Unity South Africa (BUSA) on Thursday said the Medium-Term Budget Policy Statement (MTBPS) showed honest and comprehensive reality check for the country to address its macro-economic and fiscal fundamentals.

The statement was presented by South African Finance Minister Tito Mboweni's in the parliament on Wednesday.

BUSA said the budget is an attempt that Mboweni to prevent further deterioration in growth and to reverse negative trends.

"Business is particularly concerned about the low levels of domestic investment, as the general trend is that this impacts on foreign direct investment. Minister Mboweni had a tough balancing act amid a deteriorating operating environment underscored by a technical recession," said BUSA President Sipho Pityana.

BUSA welcomed the alignment of carbon tax and carbon budget. Pityana said that the MTBS is supportive of more collaboration among the social partners.

"It is important that the government delivers on the promises and commitments made in the MTBPS. The commitment to curb corruption is particularly welcome, given the scourge and cost of state capture on our national resources," he added.

BUSA however expressed concern over the deterioration in the forecast for the debt-to-gross domestic product ratio at 59.6 percent by 2023 to 2024. BUSA is also concerned about the budget deficit peaking to 4.2 percent in 2019 to 2020 arising from an increased borrowing requirement.

The Minerals Council South Africa said the budget was done with honesty and frankness about the depth of the economic crisis the country face.

"The minister tried to strike an investor friendly tone but there was no hiding away from the fact that the fallout of the position the country finds itself in, is leading to further borrowing and higher debt levels," said Minerals Council of South Africa spokesperson, Charmane Russell.

The mining industry welcomed Mboweni's commitment to reconfigure the state owned enterprises.

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