Finance Minister to deliver mini-budget

Tuesday, October 20, 2015

Pretoria - Finance Minister Nhlanhla Nene will tomorrow table the 2015 Medium Term Budget Policy Statement (MTBPS) in Parliament.

The nation’s eyes will be on the mini-budget that Nedbank economists have dubbed a litmus test for how closely the Finance Minister has managed to adhere to the national budget which he tabled in February.

It is expected that National Treasury will revise its growth prospects.

In the national budget tabled earlier this year, National Treasury projected economic growth of just 2% for 2015 and 2.4% in 2016. Growth was expected to rise to 3% by 2017.

When coming to inflation, at the tabling of the national budget it was projected that inflation will average 4.3% in 2015.

The budget speech also noted a consolidated deficit of 3.9% of the Gross Domestic Product was projected for 2015/16, falling to 2.5% in 2017/18.

Minister Nene had also said that government will reduce spending by R25 billion in the 2015/16 and 2016/17 financial year in a bid to narrow the budget deficit.

He further raised income taxes in the February budget. This was the first hike to personal taxes for two decades.

The Minister will deliver the MTBPS at 2pm. -

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