Gigaba places economic growth outlook at 0.7%
Finance Minister, Malusi Gigaba says they have had to revise economic growth projections for the country from 1.3% slashing it to 0.7% for 2017.
Gigaba has this afternoon delivered his maiden mid-term budget speech in the National Assembly.
He says the outlook is expected to improve slowly reaching 1. 9% in 2020.
"This trend assumes that the status quo prevails. Therefore, we have the power to chart a new path as growth is improving despite persisting risks," he says.
Meanwhile, tax revenue is expected to fall short of the 2017 budget estimate of R50.8 billion.
Gigaba said this outlook could be attributed to sluggish economic growth.
"It's the largest downward revision since the 2009 recession. At the same time additional appropriations of R13.7-billion to recapitalize South African Airways and the South African Post Office are being made. These have been partially offset by use of the contingency reserve. A shortfall of R3.9-billion remains to ensure the expenditure ceiling is not breached," he explains.
Earlier, Gigaba's speech got off to a rocky start when the EFF objected to the Minister presenting the mini budget. The EFF's Mbuyiseni Ndlozi says Gigaba is a criminal.
"Parliament can't be seen to legitimise what is essentially a Gupta stougie. There's no difference between him and Duduzane. He's an extension of Mr. Zuma," he says.
EFF MPs decided to walk out of the house - refusing to be addressed by Gigaba.