Eurozone crisis could mean tougher times for South Africa

Finance Minister Pravin Gordhan

The Euro region’s debt crisis has increased risks for emerging markets and Finance Minister Pravin Gordhan appeals to all in government, including the executive, to keep a much more careful eye on how money is being spent.

Finance Minister Pravin Gordhan on Tuesday warned of tougher times ahead for the South African economy, particularly in view of the European crisis.

Speaking in the National Assembly during a debate on the main budget, he said the European crisis, and the fact that there were lower growth patterns throughout the world today, meant expectations should be lowered about what future budgets could look like.

Mr Gordhan said it was important to clearly understand the developments unfolding in the world, particularly in Europe, and what potential impact they could have on the South African economy, the jobs situation, growth prospects, and the fiscal balances and framework "that we've been trying to sustain going forward".

There could be further negative implications on revenue collection in the coming year if Europe did not sort out its problems.

He appealed to all in government, including the executive, to keep a much more careful eye on how money was being spent.

"I'm sure a lot of that is happening effectively, but there is room for improvement as all of us would acknowledge as well," he said.

The key focus needed to be an evaluation as to whether spending resulted in a change in people's lives for the better.

"That should be the sole criteria in terms of evaluating our performance," Mr Gordhan said.