Mini-budget: A tough balancing act

The MTBPS will be his second budget presentation since the tabling of the Supplementary Budget in June, which was in response to the economy-crippling Covid-19 pandemic. It also comes on the back of the recently announced Economic Recovery Plan.

Earlier this month, the Finance Minister wrote to National Assembly Speaker, Thandi Modise, requesting the postponement of the mini-budget from October 21 to today.

In a statement, Mboweni made the request having taken into consideration the complex and unusual circumstances faced by the country due to the Covid-19 pandemic, which included the tabling of a Supplementary Budget.

The Ministry of Finance and National Treasury have had to adjust the approach and consultation of the budgetary process.

Econometrix (Pty) Limited director and chief economist, Dr Azar Jammine, speaking to SAnews, said the country might see tough austerities being imposed due to the country’s recent dramatic deterioration in finances.

“That means that the Finance Minister will have to retain the kind of dramatic parameters that were incorporated in the supplementary budget in June,” he said.

The problem, however, was that in June, Mboweni forecasted economic growth of -7.1%. It appears this might be forecast further down to either -8 or -8.5%.

“That in turn means government’s revenue growth will need to be revised downwards sharply, meaning that the shortfall in government revenue is likely to be greater than what was incorporated in the supplementary budget,” said Jammine.

For more information, visit the official National Treasury website by clicking here.

#MTBPS2020 pic.twitter.com/YD7MPaLvS2

— GCIS Media Liaison (@GCISMedia) October 28, 2020

Notice: Coronavirus reporting at Caxton Local Media aims to combat fake news

Dear reader,
As your local news provider, we have the duty of keeping you factually informed on Covid-19 developments. As you may have noticed, mis- and disinformation (also known as “fake news”) is circulating online. Caxton Local Media is determined to filter through the masses of information doing the rounds and to separate truth from untruth in order to keep you adequately informed. Local newsrooms follow a strict pre-publication fact-checking protocol. A national task team has been established to assist in bringing you credible news reports on Covid-19.
Readers with any comments or queries may contact National Group Editor Irma Green (irma@caxton.co.za) or Legal Adviser Helene Eloff (helene@caxton.co.za).