Finance Minister Enoch Godongwana. Picture: Gallo Images / Sowetan / Antonio Muchave
Finance Minister Enoch Godongwana is expected to table his maiden Medium-Term Budget Speech (MTBPS) this afternoon in Parliament at 2pm.
The MTBPS sets out the policy framework for the Budget Speech that is presented every year in February.
It also updates the National Treasury’s economic forecasts for the country, adjusts the budgets of government departments, and makes emergency changes to spending.
The stream below is scheduled to go live at 2pm.
This year’s MTBPS comes under the spectre of rising petrol and food prices, which have made the cost of living for most South Africans unbearable.
There is also Eskom’s energy crisis, with load shedding occurring at a time when the economy is recovering from Covid-19-related lockdowns which have stymied SA’s growth prospects.
Previewing today’s mini-budget in a newsletter, First National Bank (FNB) economists said they did not expect any sign of deviation from the country’s current fiscal consolidation path.
Instead, they said the budget could highlight progress on critical policy considerations such as the Public Procurement Bill and implementation of the Zero-Based Budgeting framework.
“Our view is that this MTBPS will provide detailed progress made on growth-enhancing reforms that are already contained in existing policy documents, namely the National Development Plan, Treasury’s growth strategy paper, and the Economic Reconstruction and Recovery Plan.”
Meanwhile, economist Peter Baur expects more spending on social benefits when Finance Minister Enoch Godongwana delivers the medium-term budget policy statement.
Compiled by Thapelo Lekabe.
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