Godongwana has spoken, now the government must act

No surprises in new finance minister’s first policy speech

14 November 2021 - 00:01

The medium-term budget policy statement (MTBPS) tabled on Thursday had no surprises, after all. Finance minister Enoch Godongwana remarked that the only difference between him and former finance minister Tito Mboweni was that he had better shoes. Indeed, Godongwana has R120bn more revenue than Mboweni’s February budget, thanks to a cyclical commodity recovery and higher global economic growth and demand.

The bond markets are happy as the rand appreciated and 10-year bond yields declined. The unions, proponents of a big state and socialists are livid over three consecutive years of cuts in government spending. The big picture is that the budget was pragmatic and realistic...

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