South Africa’s Gigaba says will make further budget cuts as recession bites

PUBLISHED: Thu, 15 Jun 2017 13:58:14 GMT

PRETORIA (Reuters) – South Africa’s Finance Minister Malusi Gigaba said on Thursday the Treasury was looking into possibilities for further cuts in government spending and reallocation of funds to help boost growth and still remain within its fiscal target.

Gigaba, who was appointed as finance minister in March, replacing sacked Pravin Gordhan, a favourite of international investors, is battling a recession in Africa’s most industrialised economy.

“We do realise that there are hard decisions to be made … that may require that we look at further cuts to government spending and programmes,” Gigaba told a news conference, adding that the Treasury was committed to remaining within its fiscal target announced at during the annual budget in February.

(Reporting by Mfuneko Toyana; Writing by James Macharia Editing by Jeremy Gaunt)

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