Finance minister Enoch Godongwana’s maiden medium-term budget policy statement (MTBPS) will have to carefully navigate mounting pressure to raise spending on items such as social grants and salaries in the face of a temporary revenue boom that has allayed government’s fiscal woes, if not eradicated them.     

This is the view of Absa’s economics unit, led by senior economist Peter Worthington, which is predicting that tax overruns for the 2021/2022 fiscal year could hit R169bn compared to the targets set out in the February budget thanks to a better-than-expected economic recovery and a commodity price boom that has boosted corporate taxes and mining royalties. ..

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now