Finance minister Tito Mboweni will deliver his maiden medium-term budget policy speech on Wednesday, starting at 14h00.<\/p>\n
The minister faces the difficult task of addressing the many budgetary issues in government – including how on- or off-target tax revenues have been, and how the country is faring in plugging the massive R50 billion gap identified earlier this year.<\/p>\n
While analysts and ratings agencies expect no surprises to come from the budget, the prevailing view is that the numbers will be pretty bleak.<\/p>\n
There are many expectations on Mboweni to address the problems facing citizens and businesses in the tough economic environment (particularly around VAT and the high price of petrol), as well as the country’s failing state-owned companies.<\/p>\n
Other things that will need to be addressed is clarity around president Cyril Ramaphosa’s stimulus package, announced earlier in the year, which will need R50 billion to be reprioritised in the existing budget.<\/p>\n
Questions have been raised as to where this money will come from, and which departments will be affected.<\/p>\n
According to\u00a0Chris Eddy, senior investment analyst at 10X Investments, people will be looking for the answers to three broad questions regarding the budget:\u00a0Where are we now? Where do we need to be. And finally, how will we get there?<\/p>\n
“After falling into a technical recession in the first two quarters of 2018, it is expected that National Treasury will revise its 2018\/19 GDP forecasts downwards,” he said, speaking to where we are now.<\/p>\n
“If revenue expectations are revised lower, for government to maintain spending levels, National Treasury would have to borrow more money. To ensure a stable fiscal outlook and avoid ballooning debt, spending would need to be reined in,” Eddy said, pointing to where we need to be.<\/p>\n
Mboweni’s challenge is the last part of the equation – addressing how South Africa is going to get there.<\/p>\n
You can watch the stream live in the embedded video below, or catch live updates at:<\/p>\n