CAPE TOWN – “Our problem is that we spend more than we earn. It is as simple as that,” were the words of Finance Minister Tito Mboweni when delivering the Medium-term Budget Policy Statement in Parliament on Wednesday.
How will we fix our problem?
“To stabilise debt, government will target a primary balance by 2022/23. The target measure excludes support to Eskom, because that is part of a separate process. As a firststep, we have identified spending reductions of R21 billion in 2020/21 and R29 billion in 2021/22 mostly in the area of goods and services, and transfers. In addition, non‐interest spending in the outer year of the framework is constrained in line with consumer price inflation,” said Mboweni.
The Finance Minister said if the government wanted to achieve its target, it would need to find additional measures in excess of R150 billion over the next three years, or about R50 billion a year.
How will we do this?