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| Minister of Finance Enoch Godongwana Picture Supplied by: South African Government |
Yesterday the Minister of Finance Enoch Godongwana delivered the Medium Term Budget Policy Statement (MTBPS) at the Good Hope Chamber Cape Town at 2pm.
A 3% inflation target was implemented by the minister which many South Africans will benefit from.
Although Godongwana is positive about economic growth one of the challenges the country faces is the illicit economy. Government has lost R40 billion in excise duties due to the cigarette black market. For the past 6 months operations on clamping down illegal trade have been successful.
Godongwana claims the adjustment in revenue meant changes to spending with the current expenditure being R15.8 billion.
The infrastructure sector according to the minister capital payments are fast growing at 7.5% over the medium term. In March 2026 plans of a new infrastructure finance and support agency will be fully operational.
Gross revenues are projected to fall short by R15.7 billion in the next 2 years, but government’s commitment is to support the low income households, education and heath sectors.
The MTBPS focused on the growth, stability and reform of the country.
Done by: Shaneca Cupido
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