2020 National Budget Speech – time for decisive action
21 February 2020
The Minister of Finance, Tito Mboweni, faces a tough challenge in presenting the National Budget Speech on the 26th of February. He will have to show a commitment to fiscal consolidation in the context of a constrained environment plagued by low economic growth, load shedding and a potential credit downgrade by Moody’s. Averting a credit downgrade will likely be high on his agenda.
More details on the implementation of economic revival strategies, for example, the National Treasury’s economic strategy[2] and the plans referred to in the SONA will be necessary to support investor confidence.
The balance between government income (tax revenue) and expenditure is at the heart of the government budget. There will have to be concrete plans to balance the budget whilst considering the need for economic growth. The budget must also address the risk posed by rising government debt. Agri SA is hoping to hear the following elements in Minister Mboweni’s speech:
Drought support: Effective and speedy direct assistance to drought-affected farmers. Agribusinesses can act as agents to help distribute drought relief. Drought relief should cater to farmers across the sub-sectors of agronomy, horticulture and animal production.