Finance Minister Enoch Godongwana is delivering the Medium-Term Budget Policy Statement (MTBPS) in Parliament, on Wednesday 30 October, starting at 14.00.
The MTBPS sets government policy goals and priorities, forecasts the macroeconomy trajectory, and projects the fiscal framework over the next three years by outlining spending and revenue estimates.
GODONGWANA TABLES MEDIUM-TERM BUDGET POLICY STATEMENT
The Medium-Term Budget Policy Statement plays a significant role in how the country manages its money and influences the budget we see every February.
The MTBPS does more than report finances; it shapes the country’s budget. It provides a detailed plan and shares what the National Treasury expects the economy to do. It also enables the government to make quick changes to its budgets in an emergency.
On Wednesday – amid demands from political parties -Godongwana is set to table the Adjustments Appropriation Bill, the Rates and Monetary Amounts and Amendment of Revenue Laws Bill, the Taxation Laws Amendment Bill, the Division of Revenue Amendment Bill, and the Tax Administration Laws Amendment Bill.
WATCH GODONGWANA DELIVER MINI-BUDGET SPEECH LIVE
MTBPS EXPECTED TO STABILISE DEBT RATIO
Meanwhile, Johann Els, Group Chief Economist at Old Mutual, the Medium-Term Budget Policy Statement is expected to showcase continued fiscal consolidation efforts and policy reforms to narrow the budget deficit and stabilise the debt ratio over the coming years.
Els said the country’s fiscal position is steadily improving, and the budget deficit is expected to narrow further from 2023’s figures. The outcome this year will track better than February’s estimates.
The chief economist also predicted that the primary budget balance would reach a slightly bigger surplus this year – compared to previous estimates, a significant milestone that the Treasury expects will continue to strengthen in the medium term. This progress is attributed to improved revenue performance and disciplined expenditure control, which are likely to reduce the fiscal deficit to around 4.3% of GDP, down from earlier projections of 4.5%.
WHAT DO YOU WANT GODONGWANA TO FOCUS ON IN THE MEDIUM-TERM BUDGET POLICY STATEMENT?
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