- Finance Minister Malusi Gigaba told MPs government would proceed cautiously with the nuclear build programme
- Gigaba made no provision for the controversial programme during his medium-term budget policy statement in October
- He announced government would cut spending by R25 billion and increase revenue by R15 billion to combat growing debt levels
Finance Minister Malusi Gigaba has made an abrupt U-turn on the controversial nuclear build programme. He told Members of Parliament (MPs) that government would proceed cautiously with the programme.
Gigaba assured MPs that government would not engage in reckless spending while investing in greater nuclear power facilities in the country.
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Gigaba’s about turn comes after he made no provision for the controversial programme during his medium-term budget policy statement in October. During that speech Gigaba revealed that government faced a R40 billion shortfall in revenue.
He said that some tough decisions regarding spending cuts would have to be made to ensure that government debt does not balloon to dangerous levels.
Briefly.co.za learned from Eyewitness News that Gigaba told MPs that nuclear power remained part of government’s policy and was a cornerstone of plans to ensure that the light in the country remained on.
Earlier Gigaba revealed that government planned to cut spending by R25 billion and would raise an additional R15 billion in revenue to make up the R40 billion shortfall in the budget.
He said the money would be used to pay government debt which he said would balloon past 60% of GDP by 2022 if left unchecked.
Gigaba said Treasury would not be reckless and would continually assess and reassess what the country needed and what the country and the budget could afford.
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