Medium-Term Budget Policy Statement shows commitment to tackle debt
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SA’s Finance Minister, Enoch Godongwana, satisfied most of the outstanding questions that arose ahead of the delivery of his Medium-Term Budget Policy Statement on 11 November, says STANLIB Chief Economist, Kevin Lings. Minister Godongwana also, encouragingly, continued the prudent policy trajectory of his predecessor, Tito Mboweni.
The MTBPS showed a R120 million improvement in tax revenue collection above budget, and this will be used to fund a R59.4 billion overrun in government spending as well as reduce debt. SA’s fiscal and debt outlook have improved significantly compared with earlier this year and during the height of the COVID-19 pandemic in 2020.
From a growth perspective, it was encouraging that the minister made it clear the private sector should become more involved in driving the economy, both in investing and job creation.
The MTBPS showed a R120 million improvement in tax revenue collection above budget, and this will be used to fund a R59.4 billion overrun in government spending as well as reduce debt. SA’s fiscal and debt outlook have improved significantly compared with earlier this year and during the height of the COVID-19 pandemic in 2020.
From a growth perspective, it was encouraging that the minister made it clear the private sector should become more involved in driving the economy, both in investing and job creation.