Staff Writer
Finance Minister Pravin Gordhan will table the Medium Term Budget Policy Statement (MTBPS), also referred to as the “mini-budget’ on Wednesday, which is expected to continue the call for fiscal prudence and responsible government spending.
The budget, initiated nearly 20 year ago to ensure transparency and co-operative governance, outlines the Government’s fiscal framework and expenditure plans.
The budget highlights key government priorities; the size of the spending envelope for the next Medium Term Expenditure Framework (MTEF) period; new macroeconomic projections for the next three years; and projections for tax revenues, deficit and the total affordable level of spending.
It will describe Government’s goals and objectives, explain the economic environment within which those objectives are being addressed, and the total level of resources that will be available.
The very first minibudget was in 1997.
The cited reasons for this were:
(blob) Openness and transparency - that all stakeholders should have an opportunity to participate in the budget-making process, on an informed basis;
Realistic policy debate - that proposals and debate should be based on a realistic understanding of what can be afforded and delivered, and not wish lists; and
Certainty - The Policy Statement sets the boundaries of the budget debate, and so enhance the certainty of the public service and of the markets.
Gordhan will be presenting this while he faces charges of fraud, and at a time when rating agencies are keeping an eye on the country.
The agencies will be in South Africa next month to conduct another review before announcing the results in December.