2020 National Budget Speech – Sensible choices in a challenging environment
26 February 2020
The Minister of Finance, Tito Mboweni, made sensible choices to manage the government budget and support the economy. The budget highlights a renewed focus on the importance of boosting economic growth.
The stance of limiting tax increases is welcomed and can help to support growth and strengthen taxpayer confidence. Plans to reign in the public sector wage bill is also in line with a strategy of fiscal consolidation.
Aspects of relevance to agriculture include R495.1 million to improve compliance with biosecurity and support exports. Further allocations include R500 million, reprioritised over the medium term, to finalise land claims and R500 million (provisional) for disaster management to respond to the impact of recent floods and the ongoing drought.
Whilst the fiscus is under severe strain, we hoped to see more support towards agriculture. Spending on agriculture, rural development and land reform remains marginal. Agriculture needs support to implement the potential identified in the National Development Plan.