Mboweni’s team to flesh out Budget to investors, ratings agencies
It's unclear whether rating agencies will be satisfied with the action government is taking but Tito Mboweni believes there's a lot to be optimistic about.
CAPE TOWN - Top Treasury officials will embark on a post-national Budget speech roadshow next week, talking to institutional investors and rating agencies.
They'll be explaining and fleshing out Finance Minister Tito Mboweni's maiden Budget.
Mboweni delivered a tough budget speech on Wednesday, signalling an end to no-strings-attached bailouts for state-owned enterprises (SOEs), the beginnings of a plan to set Eskom back on track and initial plans to control and constrain the public-sector wage bill.
But the budget also revealed a large tax shortfall and reforecast the key debt-to-GDP ratio, predicting it would breach the 60% mark in the next four years, before pulling back.
It's unclear whether rating agencies will be satisfied with the action government is taking but Mboweni believes there's a lot to be optimistic about.
“If we are doing practical things to fix Eskom, in my view that should be viewed as positive. If we are doing something about the wage bill, that should be seen as positive. If we are saying inflation rate must remain within the inflation target range, then that is positive. So, there are many positives that the rating agencies should take into account.”
WATCH: MPs react to Mboweni's Budget speech
(Edited by Mihlali Ntsabo)