Finance Minister Tito Mboweni presented the Medium Term Budget Policy statement in parliament on Wednesday afternoon. There is a lot you need to know and a lot of numbers to comprehend. Here are some starting points.
Tthe tax base is not dwindling; it is growing above the rate of inflation, Budget shortfall notwithstanding,says the writer. (Image: Steve Buissinne / Pixabay)
Economic growth is projected at 0.5% for 2019, down from 1.5% in March, 2019, creeping to 1.7% in 2022
Consolidated government spending will total R6.3-trillion over the next three years
Expected tax revenue is R1.37-trillion for 2019/20, R53-billion, or 4% less than expected.
The consolidated Budget deficit is projected at 5.9% of GDP in the current year, averaging 6.2% of GDP over the next three years.
Debt‐service costs, wages and financial support for SOE’s are growing at 13.7% annually, double that of health, community development and economic development
In 2019/20 national debt exceeded R3-trillion. It is expected to rise to R4.5-trillion in the next three years.
As a proportion of South Africa’s GDP, gross debt rises from 56.7% in 2018/19, 60.8% in the current year to 71.3% in 2022/23.
The public sector wage bill accounts for 46% of tax revenue in 2019/20
The total revenue shortfall for 2019/20 will amount to R52.5-billion
Additional tax measures are under consideration. BM
Tthe tax base is not dwindling; it is growing above the rate of inflation, Budget shortfall notwithstanding,says the writer. (Image: Steve Buissinne / Pixabay)
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