Finance Minister Enoch Godongwana is delivering the Medium-Term Budget Policy Statement (MTBPS)
Godongwana is tabling the policy statement amid the country’s gloomy and precarious economic position that was exacerbated by the Covid-19 pandemic.
Given the prevailing economic climate, economists have crystal gazed as to what the MTBPS could contain.
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No surprises expected from 2021 MTBPS
Previewing today’s mini-budget in a newsletter, First National Bank (FNB) economists said they did not expect any sign of deviation from the country’s current fiscal consolidation path.
Instead, they said the budget could highlight progress on critical policy considerations such as the Public Procurement Bill and implementation of the Zero-Based Budgeting framework.
“Our view is that this MTBPS will provide detailed progress made on growth-enhancing reforms that are already contained in existing policy documents, namely the National Development Plan, Treasury’s growth strategy paper and the Economic Reconstruction and Recovery Plan.”
Meanwhile, economist Peter Baur expects more spending on social benefits when Finance Minister Enoch Godongwana delivers the medium-term budget policy statement.