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WATCH IN FULL: Finance minister Tito Mboweni presents medium-term budget

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WATCH LIVE: Finance minister Tito Mboweni presents medium-term budget

Finance minister Tito Mboweni is presenting the medium-term budget policy statement in parliament.

It has taken on added significance as economic growth has disappointed and the government has increased spending on parastatals, notably power utility Eskom, while the SA Revenue Service struggles to achieve tax collection targets thanks to poor growth and a legacy of governance problems. Mboweni will detail the full effect that the additional R59bn financial support for Eskom, announced in July, will have on the government’s finances, including its borrowing levels. It is anticipated that Mboweni will include more details on how to restructure Eskom’s debt, while the naming of a new CEO for the utility has been promised by the end of October.The government’s deficit is expected to rise to close to 6% of GDP, well above February’s forecast of 4.7%.

 

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