Experts weigh in on what to expect from the medium-term budget

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Investment and economic analysts hope to see the new finance minister prioritise policies that grow the economy and ease SA out of its tight, debt-heavy fiscal position.

According to Ackerman, the economy has rebounded more positively over the past year than had been expected, “or budgeted in the February national budget, partly thanks to the reopening of the global economy supporting strong exports from the local commodities and agricultural sectors”.

“What one hopes to see is whether the minister is going to be prudent and use this opportunity to ‘bank’ some of the benefits that we’ve seen, because we are still in a very tight fiscal position and, if we don’t get the economy going very soon, we might have some further fiscal challenges in the next two to three years,” Ackerman said.

They said this would mean removing any red tape that affects the ease of doing business, while still carefully managing policies that are intended to close SA’s inequality gap, such as social support, minimum wage, and the proposed National Health Insurance. “About 20% of SA’s tax revenue is already going to servicing debt, which is why the longer-term risk of a very bleak fiscal environment remains if we don’t strengthen the economy urgently and broaden the tax base.”

 

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For many many years our government has been passing budgets but we never knew what the budget was used for, the whole country is in ruins, unemployment is high, that budget doesn't work for South Africans,you better just steal that money quietly in your offices.

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