Growth forecasts were down, and the government is facing higher revenue shortfalls than previously thought. However, Mboweni looked to change things from within rather than relying on taxpayers.
Kwaku Koranteng, the head of institutional business at Absa Multi-management, says: “The MTBPS was an honest reflection of the situation in South Africa. The government is committed to clamping down on corruption and inefficiencies, and restoring state-owned entities to health.”
National Treasury forecasts that gross domestic product growth will slow to 0.7% this year, down from 1.3% in 2017, before rising to 1.7% next year and 2.1% in 2020.
Revenue shortfalls have widened over the past four years, with under-collections rising from R7.4 billion in 2014/15 to R49bn in 2017/18. The MTBPS announced that there will be a revenue shortfall of R27.4bn relative to the 2018 Budget estimate.