It's the 'how', not the 'what'
The MTBPS will be more about Tito Mboweni's message than the numbers
When finance minister Tito Mboweni makes his first budget speech in parliament on Wednesday, the tone he sets will be more important than the numbers he presents. Ahead of the president's investment conference, which starts on Friday, investors will be looking to SA's new finance minister for a clear message that the government is committed to staying on the path of fiscal discipline in the face of deteriorating economic growth and revenue prospects and of populist pressure from within its own ranks. The legacy of the Zuma years has left the Treasury with little room to manoeuvre on either the revenue or the spending side of the budget. Most taxes have been raised in recent years and many departmental budgets have been cut to make way for greater spending on free higher education. Markets and rating agencies will be watching closely for signals that the government can continue to stick within its self-imposed expenditure ceiling, despite having to accommodate higher-than-budgeted pu...
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