CAPE TOWN - Finance Minister Tito Mboweni tabled the Medium-Term Budget Policy Statement (MTBPS) today.
The 2020 MTBPS will chart the course that will allow South Africa to begin the process of economic recovery.
Here are nine things that you should know about the Medium-Term Budget Policy Statement:
- The central policy goals for government over the next 3 years are to position the economy for faster, broad-based economic growth and return public finances to a sustainable position
- The Presidency’s and the National Treasury’s joint initiative Operation Vulindlela will speed up the implementation priority reforms determined by the President.
- Government will be implementing structural reforms such as modernising industries, reducing barriers to entry and increasing regional integration and trade.
- The economic recovery plan will focus on infrastructure, electricity generation, digital spectrum allocation, employment and rapid industrialisation.
- Debt stock is expected to reach close to R4 trillion or 81.8 percent of the GDP.
- Consolidated Budget Deficit will narrow from 15.7 percent of GDP in 2020/2021 to 10.1 percent in 2021/2022 and 7.3 percent by the outer year.
- Over the Medium Term, government will phase in the principles of zero based budgeting to analyse and justify departmental spending.
- Government is committed to finalising the Public Procurement Bill during 2021/2022 after the closing of the public comments phase.
- The South African economy is expected to contract by 7.8 percent in 2020.
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