SA’s fiscal fire is at last under control. But will growth ever ignite?
The Medium-Term Budget Policy Statement has finally confirmed that SA is moving past the fiscal damage from the Zuma era, economists say.
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The Medium-Term Budget Policy Statement has finally confirmed that SA is moving past the fiscal damage from the Zuma era, economists say.
South African government bonds rallied, and the rand strengthened after Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement showed government debt as a proportion of GDP had stabilised.
Finance Minister Enoch Godongwana tabled the Medium-Term Budget Policy Statement on 21 October. Here is his speech.
The Medium-Term Budget Policy Statement confirmed that government debt (as a percentage of GDP) has declined for the first time in 17 years.
Finance Minister Enoch Godongwana looks set to confirm that South Africa has finally turned the tide on government debt in the Medium-Term Budget Policy Statement.
Osagyefo Mazwai, an investment strategist at Investec Investment Management, says he does not expect tax relief for consumers at this week’s Medium-Term Budget Policy Statement, but that could change by February.
The Medium-Term Budget Policy Statement should use the current revenue outperformance to strengthen the public finances rather than create room for unfunded spending commitments, writes Lerato Ntuli of Anchor.
The Medium-Term Budget Policy Statement will confirm one of reform’s biggest successes after more than a decade of fiscal decline. But growth is the missing ingredient, writes Busisiwe Mavuso.