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Mixed Emotions on Mboweni’s Budget Speech

Written by Mfundo on 24 February, 2021

By: Zilungile Mkhize

Economists have reacted to Finance Minister Tito Mboweni’s budget speech with many unimpressed by his pronouncements.

Mboweni Mboweni says the country’s gross loan debt will increase from R3. 95 trillion in the current fiscal year to R5. 2 trillion in 2023/24.

The South African Reserve Bank’s Quarterly Bulletin shows capital outflows on South Africa’s financial account of the balance of payments grew larger to R38.6 billion in the third quarter, following a revised outflow of R24 billion in the second quarter.

In conversation with Economist Dante Mashile on his budget reaction:

1.This year’s budget was overshadowed by a weak economy, an escalating debt to GDP ratio and a shockingly high unemployment rate, what is your reaction to what Minister Mboweni tabled this afternoon?

2. The minister did not even mention SOE’s, which we all know are struggling and dragging the economy under, in his budget in 2020, he said they’d bail out SAA and assist Eskom, why do you think he was mum about it this time around?

3. Infrastructure investment is key to the country’s economic growth and has been allocated R792 billion, how will this assist in job creation and boosting the fragile economy?

A total R217 billion will be spent over the next three-years on ambitious economic development programmes aimed at promoting faster and sustained inclusive economic growth.