Finance Minister
Tito Mboweni delivered his medium-term budget statement in parliament
yesterday.here below is the economic overview.
F Economic growth is now projected at
0.5%
F Revenue have been sharply reduced
F Spending pressures continue to build
up, compelled by the public service wage bill and state owned companies are in
trouble
F Public finances have gotten worse since
2019 budget because of lower growth, tax revenue and an increase in support to
state owned companies.
F The 2019 Mid-term budget policy
statement (MTBPS) proposed an approach over the medium term that if implemented
will restore the momentum of economic growth and calm the public finances
F Over the next three years, merged
spending will total R6,3 trillion, with 48 cents of this amount going towards
social grants, education and health.
F Revenue shortfalls and rising
spending pressures are threatening government’s ability to maintain existing
levels of service provision and infrastructure investment.
F The fused budget delict averages 6,
2% of GDP over the next 3 years. Debt and debt service costs will continue to
increase, with the debt to GDP ratio now estimated at 71.3 per cent in 2022/23
F Tax measures will also be considered
F Government is providing medium term
support to Eskom to secure energy supply and to honor the states contractual
agreements.
F The National treasury , in
partnership with the department of public enterprises, is instituting a series
of measures to bring discipline to the department of finance and step up the timeline
for restructuring
F Debt relief for Eskom will only be considered
once operational efficiencies have been achieved.
F Interventions to improve the quality
of infrastructure , planning is beginning to show some results
F Further measures to reduce wasteful
expenditure, including limiting claims against the state will be implemented in
the coming year.
No wage increase
According
to #Timeslive , Mboweni told the parliament that senior government officials won’t
get a pay raise for the foreseeable future adding to say these measure are to
reduce the public sector wage bill, and Cabinet, premiers and MEC’S salaries will
remain the same, and all domestic travel will be on economy class tickets.
E-tolls not going anywhere
Times live
reported saying the e-toll system would remain in its current form, he said the
decision was taken after consulting key players in the transport sector. Clearly
saying that the needs to build a culture of payment, government services can be
sustained. Adding to say people must appreciate the services provided to them,
and just like they go to retail store to buy bread they should pay for the use
of service.
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