MEDIUM TERM BUDGET 2019

Ten things you need to know about Mboweni’s MTBPS

By Sasha Planting 30 October 2019
Caption
Tthe tax base is not dwindling; it is growing above the rate of inflation, Budget shortfall notwithstanding,says the writer. (Image: Steve Buissinne / Pixabay)

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.

  1. Economic growth is projected at 0.5% for 2019, down from 1.5% in March, 2019, creeping to 1.7% in 2022
  2. Consolidated government spending will total R6.3-trillion over the next three years
  3. Expected tax revenue is R1.37-trillion for 2019/20, R53-billion, or 4% less than expected.
  4. 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.
  5. 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
  6. In 2019/20 national debt exceeded R3-trillion. It is expected to rise to R4.5-trillion in the next three years.
  7. 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.
  8. The public sector wage bill accounts for 46% of tax revenue in 2019/20
  9. The total revenue shortfall for 2019/20 will amount to R52.5-billion
  10. Additional tax measures are under consideration. BM

 

 

 

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