Carol Paton Writer at Large

In the full horror of Wednesday’s medium-term budget policy statement (MTBPS), most observers were drawn to one overwhelming conclusion: finance minister Tito Mboweni has no plan to get us out of this mess. 

That is not the case. Mboweni does have a plan and it is very ambitious. He wants to extract the lion’s share of the R50bn a year he needs in savings on the budget from the public sector wage bill. It is a huge ask. In case the stakes are not high enough, as SA’s debt-to-GDP ratio hurtles towards 80% over the next decade and the fiscal deficit hits 6%, it is the only plan on the table.

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 exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.