'MTBPS showed clear commitment to stabilising govt finances'

Finance Minister Tito Mboweni delivered his budget policy speech in Parliament on Wednesday afternoon.

Finance Minister Tito Mboweni briefs the media ahead of the Medium Term Budget Policy Statement on 24 October 2018. Picture: Cindy Archillies/EWN

CAPE TOWN - Some economists are optimistic about Finance Minister Tito Mboweni’s Medium-Term Budget Policy Statement (MTBPS).

Mboweni delivered his budget policy speech in Parliament on Wednesday afternoon.

During his speech, he committed to urgently fixing the South African Revenue Services (Sars).

Nedbank economist Isaac Matshego says he was impressed by the speech as it showed a clear commitment to stabilising government finances.

“It showed a clear commitment to making government spending more efficient to, sort of, cleaning up, getting rid of corruption and stabilising the South African Revenue Services and protecting the mandate of the SA Reserve Bank.”

READ: The full MTBPS

Speech by Primedia Broadcasting on Scribd

Independent economist Robert Jeffery says he was impressed by the quality of the speech and believes that in due course it will strengthen the direction of South Africa.

“South Africa needs to attract investment; both foreign and domestic, and in order to do that, we need to restore confidence. There was one thing he touched on, which is the independence of the Reserve Bank when he said the independence of the Reserve Bank must not be queried.”

Meanwhile, Investec economist Annabel Bishop says the budget was quite strong, as it looks at lifting business confidence, investment and economic growth, and speaks to the need to fix the corruption issues and the weakness of Sars.

“The budget itself was poor; in terms of projection on debt and fiscal debt, the systematic and rating agencies. However, in terms of growth, it came through as pro-growth and pro-economic growth. It signalled there won’t be any substantial tax increase going forward.”

WATCH: Tito Mboweni post-MTBPS briefing

(Edited by Zamangwane Shange)