Finance Minister Enoch Godongwana will table the Medium-Term Budget Policy Statement (MTBPS) in Parliament on 30 October 2024.
The MTBPS sets government policy goals and priorities, forecasts the macroeconomy trajectory, and projects the fiscal framework over the next three years by outlining spending and revenue estimates.
GODONGWANA SET TO TABLE MEDIUM-TERM BUDGET POLICY STATEMENT
The Medium-Term Budget Policy Statement plays a significant role in how the country manages its money and influences the budget we see every February.
The MTBPS does more than report finances; it shapes the country’s budget. It provides a detailed plan and shares what the National Treasury expects the economy to do. It also enables the government to make quick changes to its budgets in an emergency.
One of the MTBPS’s primary functions is to provide an updated view of the country’s economic health.
Godongwana will table the Medium-Term Budget Policy Statement in Parliament at 14:00 on Wednesday, 30 October.
HOW DID THINGS LOOK LIKE FOR SOUTH AFRICA IN 2023?
In November 2023, Godongwana confirmed that the country’s budget deficit had worsened by 4.9% since the budget speech he tabled in February.
South Africa faced a R57 billion shortfall at the time and needed to make good spending cuts of roughly R213 billion over the next four years. The projected revenue shortfall over the next three years stood at an expected R178 billion.
During the 2024 budget speech, Godongwana said government is staying the course on the fiscal strategy outlined in the 2023 MTBPS and will achieve a primary budget surplus in 2023/2024,
with debt stabilising by 2025/2026.
Godongwana said the consolidated budget deficit is projected to narrow from 4.9% of Gross Domestic Product (GDP) in 2023/2024 to 3.3% by the end of the 2024 medium-term expenditure framework (MTEF) period.
“The balanced approach to fiscal consolidation includes expenditure restraint and moderate
revenue increases, while continuing to support the social wage and ensuring additional
funding for critical services.”
DO YOU THINK THE MEDIUM-TERM BUDGET POLICY STATEMENT WILL PROVIDE A CLEAR RESOLUTION TO THE COUNTRY’S EVER-INCREASING DEBT?
Let us know by clicking on the comment tab below this article or by emailing info@thesouthafrican.com or sending a WhatsApp to 060 011 021 1. You can also follow @TheSAnews on X and The South African on Facebook for the latest news.
