New Finance Minister Tito Mboweni delivers his first official medium-term budget policy statement today.
The Minister highlighted that over the past decade the growth of the country has been significantly slow, however National Treasury is building partnerships to find solutions to the development challenges faced by South Africa and the region.
“The Medium-Term Budget Policy Statement is an opportunity to restore trust between government and society,” said Mboweni.
The largest allocation in the medium-term is for education, health, social development and community development. Together, these four areas will receive more than 60% of non-interest expenditure.
The second element in the plan is about reprioritisation and more effective spending which is projected to be R5.9 trillion over the medium term.
The Minister also quoted from the book of Isaiah in the bible which reads, “Your people will rebuild the ancient ruins and will raise up the age-old foundations; you will be called Repairer of Broken Walls, Restorer of Streets with Dwellings”.
The mini budget is to give the latest information on state revenue projections, government debt and the deficit and also provide a three-year overview of where the National Treasury thinks the South African economy is heading.
All you need to know about the medium term budget statement:
As of the 1 April 2019, government will zero-rate the following items: 1.Sanitary pads
Restructuring of the electricity sector is underway. “This must include a long term plan to restructure Eskom.”
Frequencies to enable high speed internet will be auctioned early next year. Steps will be taken to reduce data costs and improve data quality.
The Land Bank will continue to support emerging farmers. “Our reprioritisation efforts will support the Bank to conclude transactions worth R16.2 billion over the next 3 to 5 years that will create jobs in agriculture.”
Developing countries are now expected to grow by 4.7 % in 2018 and 2019. For 2018, South Africa’s growth forecast has been revised down from 1.5 % to 0.7 %.
Female learners in schools will have access to sanitary pads and access to adequate sanitation to all learners.
Through the renewable energy IPPs, equity for local communities has been secured, who will receive about R29.3 billion in net dividend income over the life of the projects
Recently concluded power-purchase agreements will create an estimated 61 000 jobs and enable investment of R56 billion.