WRAP | Government budget over the next three years to focus on service delivery: Enoch Godongwana

November 11 2021 - 15:15

Commodities boom boosts tax revenue but it could be short-lived

A commodities boom has seen government collecting R120bn more in tax revenue than previously projected, helping to push economic growth to 5.1% in 2021, up from a 6.4% contraction in 2020.

Despite the surprising rebound, the economy remains at risk as a result of load-shedding, rising public sector debt and the slow pace of implementing economic reforms. These are key contributing factors to growth shrinking to a projected 1.8% in 2022/23 and 1.6% in 2023/24.

In a review of the medium-term budget policy statement (MTBPS), the National Treasury is warning that while the global demand for commodities has enabled mining to contribute massively to the revenue kitty, the additional money “flatters to deceive” because revenue collection still remains under pressure.

November 11 2021 - 14:58

‘Tough love’ for ailing SOEs as finance minister closes tap

Finance minister Enoch Godongwana has opted to “practise tough love” regarding  struggling state-owned enterprises (SOEs), saying their performance will have to drastically improve before receiving any further bailouts from government.

In his first Medium-Term Budget Policy Statement (MTBPS) presented in parliament on Thursday, Godongwana said he would, in the next three years, avoid further bailouts of SOEs, as they have been identified as a huge risk to the sustainability of the public purse.

A few hours before delivering his speech in parliament, Godongwana told journalists at a press conference that government was losing patience with SOEs that kept knocking at its door with cap in hand, while their performance has remained lacklustre over several years.

November 11 2021 - 14:57

Treasury welcomes deregulation of electricity

The National Treasury has backed efforts to deregulate the energy sector by allowing private players to enter the market and sell electricity directly to consumers.

This as it described continuous power cuts implemented by Eskom as a drag on growth.

“There is profound uncertainty about the durability of the economic recovery, mainly due to renewed volatility in global conditions and the risk of renewed Eskom power cuts,” the Treasury said in a review of the medium term budget.

November 11 2021 - 14:55

Godongwana has not budgeted for extension of R350 social relief of distress grant beyond March 2022

Finance minister Enoch Godongwana has not budgeted for an extension of the R350 social relief of distress grant beyond the March 2022 expiry date, saying that decision resides with the cabinet.

“In terms of the basic income grant or R350 or anything, our view is that it comes to an end, it was extended until the end of March. Between now and end of March, government has got to decide what they do and not Treasury.

“They will decide, do you want to extend it, do you want this? And if you want any of these things, you've got to decide whether you've got anything to cut to fund that,” he said on Thursday.

November 11 2021 - 14:44

Godongwana on R350 Covid-19 grant

November 11 2021 - 14:35

Godongwana on fee-free higher education

Government plans to maintain its commitment to supporting fee-free higher education. In this regard, funding for fee-free higher education and training has been increased.

November 11 2021 - 14:30

R1,000 sweetener to civil servants adds R20bn to government wage bill

The government’s decision to offer a R1,000 one-off gratuity to civil servants as a sweetener for them to accept a 1.5% wage increase will cost R20.5bn in the current financial year.

This is money that was not catered for when former finance minister Tito Mboweni tabled the 2020/2021 budget in February.

This means that current finance minister Enoch Godongwana would have to ensure that government departments reprioritise and shift funds around to finance the payment of the gratuity.

November 11 2021 - 14:28

WATCH LIVE | 2021 Mid-Term Budget Policy Statement

November 11 2021 - 14:20

November 11 2021 - 14:00

Enoch Godongwana delivers the medium term budget speech