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MNI South Africa MTBPS Preview - November 2023: MTBPS To Confirm Gloomy Fiscal Outlook

Executive Summary:

  • South Africa's mid-term budget is expected to confirm gloomy fiscal situation.
  • Finance Minister hinted at "moderate" spending cuts and "sustainable" increase in borrowing.
  • Political considerations constrain scope for bold spending reductions.


Click here to see our preview including a summary of sell-side views:

MNI SA MTBPS Preview - November 2023.pdf

South Africa’s Finance Minister Enoch Godongwana is widely expected to strike pessimistic notes when he tables his Medium-Term Budget Policy Statement (MTBPS) on Wednesday, alongside fresh macroeconomic projections, additional requests for funds and emergency adjustments to spending. During a speech at the Kgalema Motlanthe Foundation’s Annual Drakensberg Inclusive Growth Forum a few days ago, Godongwana warned that unless significant fiscal consolidation measures are taken, the government could “run out of cash” by the end of March.

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