Chief Executive at Pan African Capital Holdings, Dr Iraj Abedian says the Mid-Term Budget speech delivered by finance Minister Malusi Gigaba on Wednesday is very concerning.
The rand hit its lowest level ever while Gigaba delivered his speech in Parliament.
Abedian says the fact that the rand plummeted at Gigaba's speech is a reaction of concern.
The fact that the Minister, Deputy Minister and their team have not come up with a responsible response to this very critical economic fiscal condition is a very concerning issue.— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
The picture that the Minister has painted for us is that 'we know things are wrong but we not going to do anything about it'.— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
That is not a way to respond to an emergency conditions. We have the Minister acknowledging that Eskom, Denel and the rest of them are bleeding the nation dry, but takes no decision.— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
According to Abedian, the cabinet doesn't have the right political consistency to stand behind the Finance Minister to do the right thing.
He says the county is in a state of ICU and the Minister has no plan to fix it instead he gives the nation a worrying picture that in four years time you'll hit a debt trap.
In his speech Gigaba said our Gross National Debt is projected to reach 60% of our GDP by 2022 and tax hikes or spending cuts to the tune of R40 billion rand will be needed to stabilize that.
The more you tax the people, the less you will correct - the more you push the economy into contraction and that is not good for job creation and not good for containing poverty...— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
To hear the rest of the interview, listen below: