Eish! Grim outlook for Medium-Term Budget Policy Statement
Finance minister Enoch Godongwana will deliver today’s Medium-Term Budget Policy Statement, and the outlook doesn’t look rosy.
Today’s Medium-Term Budget Policy Statement (MTBPS) is a red-letter day for the South African economy. To be delivered by Finance Minister Enoch Godongwana, he has already said in a speech in Kwa-Zulu Natal last week that the country is running worryingly low on money, reports The Citizen.
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The Minister is expected to elaborate in the Medium-Term Budget Policy Statement just how unchecked government spending is. While revenue is low, the country’s debt is skyrocketing and he’ll explain plans from National Treasury on how to get it under control.
MEDIUM-TERM BUDGET POLICY STATEMENT
As we have reported before, the likelihood is not a major shift in one particular direction but rather a balanced response from the Finance Minister. A tough call when public debt currently amounts to about R4.5-trillion.
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Speaking ahead of the today’s Medium-Term Budget Policy Statement, the Finance Minister was quoted as saying, a projected loss over the next few months means the South African Reserve Bank (SARB) could run out of money as soon as March 2024.
SPIRALLING COSTS
R111-billion for police, a health budget of R253-billion, education costs R306-billion, and the cost of servicing debt sits at R366-billion. “This year alone, the amount of debt we are going to redeem is such that if we do not do anything, we won’t have cash by the end of March,” said Godongwana.
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In his address ahead of the Medium-Term Budget Policy Statement, the minister reiterated corruption, crime and load shedding as big issues affecting SA’s bottom line.
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