Cabinet welcomes medium term budget, promises debt reduction | Fin24
 
Loading...

Cabinet welcomes medium term budget, promises debt reduction

Oct 26 2018 12:53
Khulekani Magubane and Sibongile Khumalo, Fin24
Finance Minister Tito Mboweni during a media brief

Finance Minister Tito Mboweni during a media briefing after his first mid-term budget speech at Parliament on October 24, 2018 in Cape Town. (GALLO IMAGES)

Related Articles

Mboweni hints at risky changes in mini budget

Mboweni warns if SA ends up in debt trap, we will have to approach IMF

How markets were blindsided by Mboweni's mini budget

 

Cabinet welcomed Minister of Finance Tito Mboweni’s first medium-term budget policy statement and maintained that government remained committed to stabilising debt and bringing debt levels down.

Mboweni tabled the medium-term budget policy statement on Wednesday afternoon in the National Assembly, less than two weeks after being appointed and sworn in as a minister.

The speech received mixed reactions overall, with some in the business community disappointed in the lack of a concrete plan to reduce debt.

According to the budget policy statement government's gross loan debt is expected to accelerate to 58.5% of gross domestic product in 2021/22. The increase from 55.8% an increase is mostly attributed to currency fluctuation.

Cabinet said that government remains committed to fiscal sustainability, but there has been slippage since the tabling of the 2018 Budget in February this year. "Against the backdrop of a difficult economic and fiscal environment, the proposed division of revenue continues to prioritise large social spending programmes that support basic education, health, social welfare, water, sanitation and electricity services," said the Cabinet statement.

* Visit Fin24's 2018 mini budget hub for all the news, views and analysis.

Follow Fin24 on Twitter and Facebook. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What is your reaction on Tito Mboweni's announced VAT exempted items?

Previous results · Suggest a vote

Loading...