20°C / 22°C
  • Mon
  • 21°C
  • 9°C
  • Tue
  • 21°C
  • 10°C
  • Wed
  • 20°C
  • 10°C
  • Thu
  • 19°C
  • 8°C
  • Fri
  • 18°C
  • 6°C
  • Mon
  • 19°C
  • 14°C
  • Tue
  • 15°C
  • 10°C
  • Wed
  • 14°C
  • 9°C
  • Thu
  • 15°C
  • 11°C
  • Fri
  • 18°C
  • 9°C
  • Mon
  • 23°C
  • 10°C
  • Tue
  • 24°C
  • 11°C
  • Wed
  • 23°C
  • 10°C
  • Thu
  • 22°C
  • 8°C
  • Fri
  • 20°C
  • 8°C
  • Mon
  • 22°C
  • 7°C
  • Tue
  • 22°C
  • 6°C
  • Wed
  • 23°C
  • 7°C
  • Thu
  • 22°C
  • 5°C
  • Fri
  • 20°C
  • 3°C
  • Mon
  • 25°C
  • 16°C
  • Tue
  • 23°C
  • 16°C
  • Wed
  • 19°C
  • 15°C
  • Thu
  • 21°C
  • 13°C
  • Fri
  • 20°C
  • 12°C
  • Mon
  • 21°C
  • 14°C
  • Tue
  • 16°C
  • 9°C
  • Wed
  • 14°C
  • 8°C
  • Thu
  • 15°C
  • 10°C
  • Fri
  • 18°C
  • 10°C
  • Mon
  • 17°C
  • 10°C
  • Tue
  • 13°C
  • 5°C
  • Wed
  • 15°C
  • 4°C
  • Thu
  • 15°C
  • 5°C
  • Fri
  • 19°C
  • 6°C
  • Mon
  • 18°C
  • 12°C
  • Tue
  • 14°C
  • 8°C
  • Wed
  • 14°C
  • 6°C
  • Thu
  • 14°C
  • 8°C
  • Fri
  • 18°C
  • 7°C
  • Mon
  • 24°C
  • 9°C
  • Tue
  • 25°C
  • 9°C
  • Wed
  • 25°C
  • 9°C
  • Thu
  • 24°C
  • 7°C
  • Fri
  • 22°C
  • 6°C
  • Mon
  • 23°C
  • 3°C
  • Tue
  • 22°C
  • 5°C
  • Wed
  • 23°C
  • 4°C
  • Thu
  • 15°C
  • 1°C
  • Fri
  • 18°C
  • 0°C
  • Mon
  • 27°C
  • 8°C
  • Tue
  • 32°C
  • 8°C
  • Wed
  • 19°C
  • 9°C
  • Thu
  • 29°C
  • 8°C
  • Fri
  • 20°C
  • 7°C
  • Mon
  • 19°C
  • 13°C
  • Tue
  • 15°C
  • 7°C
  • Wed
  • 12°C
  • 6°C
  • Thu
  • 14°C
  • 9°C
  • Fri
  • 17°C
  • 8°C

Mboweni walks the talk on pledge to halt bailouts to troubled SOEs

While South African Airways (SAA) will this year get R4.3 billion and Eskom more than R31 billion, this was money that was allocated in previous budgets and cannot be classified as new bailouts.

Finance Minister Tito Mboweni delivers his Budget speech in Parliament on 24 February 2021. Picture: GCIS.

CAPE TOWN – Finance Minister Tito Mboweni walked the talk on his pledge to stop bailouts for state-owned entities (SOE).

In his 2021 budget unveiled on Wednesday, the embattled Land Bank was the only SOE to get a financial lifeline, amounting to R7 billion over the next three years.

While South African Airways (SAA) will this year get R4.3 billion and Eskom more than R31 billion, this was money that was allocated in previous budgets and cannot be classified as new bailouts.

FULL SPEECH: Tito Mboweni's 2021 Budget

At the briefing after his speech, Minister Mboweni was asked how he could justify giving SAA more money while cutting social grants.

His response was brief and to the point: “There is no allocation in this budget for SAA – and we have not cut social grants – so the question does not apply, really.”

Mboweni told the briefing that SAA’s business rescue practitioners have asked for R3.5 billion, but this still has to be interrogated.

“We have not come to that stage yet – but in this budget, this year, there is no provision for SAA.”

The allocation for social grants has not been slashed, but it is true that beneficiaries will get an increase that is below inflation, and so in real terms, those who depend on grants will have less money to spend.

“The allocations that were made is what we could afford, overall, if you look at social services, they occupy about 56% of the allocations. That is quite substantial, in a country like ours, given the nature of the budget.”

WATCH: R10bn for vaccines & no tax hikes - Mboweni delivers Budget Speech

Download the Eyewitness News app to your iOS or Android device.