Finance Minister Tito Mboweni will table the Medium Term Budget Policy Statement in Parliament on Wednesday afternoon.
The statement, also known as the medium-term budget or the mini budget (a description that the finance minister doesn’t like to use) provides a review of state spending between April and September, setting the scene for the main budget in February. It also provides an overview of key spending plans for the state for the next three years, gives an update on tax revenue collections, and what Treasury expects from SA’s economy.
While new spending plans – such as tax increases – aren’t usually announced during the medium-term budget, Mboweni can announced ‘adjustments’ to allocations from the main budget earlier in the year.
This year all eyes will be on what the finance minister says about embattled state-owned airline SAA, which still needs just over R10 billion in funding for its long-delayed rescue plan to take flight.
Mboweni is also expected to speak about cuts to state expenditure, particularly around the salaries of civil servants. Economists will be closely watching what he says about SA’s mounting sovereign debt, and a projected steep fall in tax revenue collection in light of the Covid-19 pandemic and lockdowns.
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