Government to sell some Telkom shares: Gigaba

By Janice Roberts

Government will dispose of a portion of its Telkom shares, Finance Minister Malusi Gigaba said today as he delivered his maiden Medium Term Budget Policy Statement speech in parliament.

“This year, sluggish economic growth has caused a significant reduction in the tax revenue outlook which has significantly eroded government’s fiscal position. Tax revenue is projected to fall short of the 2017 Budget estimate by R50.8 billion in the current year, the largest downward revision since the 2009 recession.

“At the same time, additional appropriations of R13.7 billion to recapitalise South African Airways (SAA) and the South African Post Office (SAPO). These have been partially offset by use of the contingency reserve. A shortfall of R3.9 billion remains.”

To ensure that the expenditure ceiling is not breached, government had taken the decision to sell some of its Telkom shares.

“We do not take this decision lightly, but we have had to in order to maintain the credibility of the expenditure ceiling,” the Minister added.

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