BUDGET DAY
CAROL PATON: Treasury is a shell, scoured of idealism and power to deliver
Pravin Gordhan’s budget speech will lack credibility without Jacob Zuma’s support, writes Carol Paton
Wednesday’s budget day will be different from any that has gone before. When Finance Minister Pravin Gordhan stands up to speak in Parliament he will know, and we will know, that he does not have President Jacob Zuma’s support. As admired and respected as Gordhan is by the public and by the financial and investor community, that reality casts doubt over the credibility of the entire exercise. As much as Gordhan will stress that the budget is a collective and collaborative outcome of the Cabinet, his words and proposals will be weighed against whether, in real terms, he has political support to achieve them. The Treasury still has a firm hold on big, important things like the fiscal ceiling and the tax regime. The budget framework is still intact. For the investor community, this may be reassuring. However, the real reason these fundamentals remain intact is not because there is consensus over their importance, but because those who oppose the Treasury — from within the government an...
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