Treasury maintains firm stance on not giving SOEs bailouts
CAPE TOWN - National Treasury has maintained its firm stance on state-owned enterprises (SOEs), saying it's determined to apply the fiscal strategy.
Treasury will continue the trend of not bailing out SOEs from the previous two budgets, even though it will offer guarantees to support entities like Transnet to allow it to execute its capital investment programme and do business in market.
Minister Enoch Godongwana and Treasury officials on Friday briefed a joint meeting of Parliament's four finance committees from both houses on the budget and fiscal framework.
Struggling SOEs failed to get a mention in the third version of the 2025 budget that was tabled on Wednesday, with no bailouts in sight over the medium term.
National Treasury Director-General Duncan Pieterse told members of Parliament (MPs) that this was part of their fiscal strategy to contain costs.
"Of course, this budget maintains the strategy of ensuring that we do not provide or recommend large balance sheet support or bailouts to state-owned companies."
While there are no bailouts on the cards, state-owned companies, public entities, and municipalities will together fund 72.7%, or R748.5 billion, of total public-sector capital investment from their budgets.
The Passenger Rail Agency of South Africa (PRASA) will also benefit to the tune of R66.3 billion, out of which R18.2 billion will go to the rolling stock fleet renewal programme.
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