History set to repeat itself when Finance Minister Mboweni delivers his mini budget speech today
30 October 2019
Further cuts to important social priorities are likely to be the order of the day, when Finance Minister Tito Mboweni delivers the first Medium Term Budget Policy Statement (MTBPS) of the sixth administration today. The tabling of the MTBPS is a significant moment in the year as it, amongst others, sets out how departments have spent their budgets within the first six months of the financial year and importantly, outlines any revisions to departmental allocations. This could mean further additions or reductions to existing budgets. The MTBPS also outlines how the State will collect and spend funds over the next three years.
Following the 2018 MTBPS, Equal Education (EE) raised its concerns about an almost stagnating basic education budget, and the implications this would have on thousands of learners across South Africa. We were further alarmed by continued decreases to infrastructure budgets over the medium term.
While EE recognises that government has had to make tough decisions as a result of weak economic growth, increased debt service costs and lower than expected revenue collection, the reality is that dysfunctional state-owned entities continue to ravage desperately needed State funds. It is likely that projections will see further cuts to education spending in this MTBPS, which would be an indictment on the sixth administration so early on in its term.
What are we expecting?