Cabinet welcomes mini budget

Thursday, October 25, 2018

Cabinet has welcomed Finance Minister Tito Mboweni’s maiden Medium Term Budget Policy Statement (MTBPS), saying it is based on the strong conviction that South Africa can be renewed.

Cabinet said this in a statement issued after a meeting in Cape Town on Wednesday.

“The 2018 MTBPS highlights the difficult economic and fiscal choices confronting government over the next three years. Economic growth for 2018 has been revised down from 1.5% to 0.7%, and the global environment remains challenging for emerging market economies,” Cabinet said.

The 2018 MTBPS, gives effect to the President’s growth economic stimulus and recovery plan, which will be underpinned by fiscal and monetary stability.

“Government remains committed to fiscal sustainability, but there has been slippage since the tabling of the 2018 Budget in February this year. Government remains committed to stabilising and bringing down debt,” the statement reads.

Against the backdrop of a difficult economic and fiscal environment, Cabinet said the proposed division of revenue continues to prioritise large social spending programmes that support basic education, health, social welfare, water, sanitation and electricity services.

The MTBPS came on the eve of the inaugural Investment Conference at the Sandton Convention Centre in Johannesburg. President Ramaphosa is to preside over the much-anticipated conference.

Cabinet said the conference is part of a combination of efforts to attract investments and grow the economy.

“Additionally, the four investment envoys who were appointed by the President will report back to the conference on progress made,” said Cabinet. –