Behind Treasury’s unexpected R100bn windfall
The budget could deliver a large windfall. The problem will be resisting the temptation to spend rather than save it
Despite the Covid pandemic, SA is in the surprising position of expecting a R100bn revenue overrun for the 2020/2021 fiscal year. How the government treats this windfall will say volumes about its priorities and its understanding of the precariousness of SA’s public finances.
Economists expect tension to emerge between the National Treasury and the rest of the cabinet once the government realises the "mouth of the hippo" (the gap between revenue and expenditure) isn’t quite as wide as it was led to believe it was by finance minister Tito Mboweni...