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Godongwana Holds Firm on The Prior Fiscal Consolidation

SOUTH AFRICA
  • MTBPS:looking at the statement thus far there does not seem to be any deviation from Mboweni's fiscal consolidation path
  • In terms of the basic income grant, godongwana seems to have stuck to his guns on not dishing out a permanent grant at this meeting with the decision deferred to Feb 2021
  • In the absence of faster, job-creating growth, it is essential to maintain social protection in a sustainable way. Any proposals to expand this system should meet the test of sustainability and effectiveness by being:
  • Fully and appropriately financed to ensure that the fiscal balance does not deteriorate.
  • Evaluated against pre-existing priorities of government that remain unfunded, including in basic services, education and healthcare.
  • "Given the weakened public finances, new spending commitments can only be funded by closing existing programmes to free up revenue, or through permanent increases in revenue collection.
  • New tax proposals must also be assessed against their revenue-raising potential, and wider effects on economic activity and growth. "
  • GODONGWANA: BECUASE OF TEMPORARY REVENUES WE SHOULD NOT COMMIT TO PERMANENT EXPENDITURES
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Market NewsHomepage
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Market NewsHomepage

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