Risks to carefully laid fiscal plans abound
Failure to secure public-sector wage cuts and ailing SOEs could scupper fiscal consolidation aims
Though finance minister Tito Mboweni’s 2021 budget showed an improved outlook for SA’s battered public finances, the country is not out of the woods yet. Several risks outlined in the Budget Review could scupper the Treasury’s careful commitment to fiscal consolidation.
Chief among these would be a failure to secure a reduction in the public-sector wage bill, which must still be negotiated with unions in the coming months. ..