Simnikiwe Hlatshaneni
Premium Journalist
4 minute read
10 Nov 2021
6:19 pm

Mid-term budget forecast: Economist expects more spending, no tax hike

Simnikiwe Hlatshaneni

Economist Peter Baur expects more spending on social benefits when Finance Minister Enoch Godongwana delivers the medium-term budget policy statement.

Finance Minister Enoch Godongwana. Photo: Gallo Images/Alet Pretorius

Fiscal prudence may shift towards more social spending in South Africa, an expert predicts ahead of the medium-term budget policy statement (MTBPS) on Thursday. Despite the austerity measures announced in the previous MTBPS, which aimed to cut as much government spending as possible, Finance Minister Enoch Godongwana has seen mounting pressure to alleviate extreme poverty.  Economist Peter Baur expects more spending on social benefits - given the extreme levels of poverty and the impact of Covid-19 on unemployment - with more prudent fiscal monitoring.  His prediction coincides with calls from unions for government to prioritise the poor with more taxpayers'...