Question NW627 to the Finance. [179]

Reply:

A binding fiscal anchor will protect the consistency of service delivery spending by preventing fiscal slippages that result in painful fiscal adjustment measures. Government’s objective of adopting a binding fiscal anchor in the 2024 Budget Review aims to enhance fiscal balances, ensure consistent fiscal targets, and lower borrowing costs. Achieving a primary budget surplus at the end of this month signifies an important step in the fiscal consolidation path, demonstrating our commitment to prudent fiscal management​​.

The strategy for fiscal sustainability integrates with broader economic performance objectives in a 3 pillar framework outlined in chapter 2 of the budget review. The 2024 Budget protects essential services and stimulates economic development by maintaining sound public finances. This approach is evident in our commitment to structural reforms across critical sectors such as energy, freight, and telecommunications, essential for removing growth barriers and creating a conducive environment for economic expansion​​.

Moreover, the Budget articulates a clear plan to accelerate economic growth through these reforms. The focus on establishing competitive markets in electricity and logistics underscores the government's strategy for fostering structural transformation​​.

The revised spending allocations in the 2024 Budget underscore the strategic approach to supporting essential services and infrastructure development, both critical for long-term economic growth. The Budget ensures provinces have the resources to fund key personnel such as teachers and nurses, vital for service delivery, while prioritizing infrastructure investment through innovative reforms and incentives​​.