Tito Mboweni’s “mini-budget” reveals a full-scale budget blowout
24 October 2018
The Minister of Finance, Tito Mboweni’s, “maiden” medium-term budget policy statement reveals a full-scale budget blowout, which is clear evidence that the “new path” of economic growth, employment and transformation has failed in South Africa.
The medium-term budget policy statement reveals a full-scale budget blowout, with stagnant economic growth (2%), lower-than-expected revenue (R85 billion), higher-than-expected expenditure (R12 billion) and “bail-outs” of state-owned enterprises (R9 billion), including a R5 billion “bailout” of zombie state-owned airline, South African Airways.
The fact is that, compared to Main Budget 2018, there will be significant “fiscal slippage”, with:
- the fiscal deficit increasing by R22 billion in 2018/19, R33 billion in 2019/20 and R41 billion in 2020/21;