Some economists not expecting any major surprises with MTBPS

JOHANNESBURG - Some economists don’t expect any major surprises when the national Treasury tables the medium-term budget policy statement (MTBPS) this week.

Finance Minister Enoch Godongwana is set to deliver the MTBPS at the National Assembly on Wednesday.

While Godongwana will reserve big policy items for the February budget, there are still some fiscal pressure points expected to take centre stage.

This year’s medium-term budget policy statement comes on the back of a less bleak economic picture spurred by political stability, lower inflation, lower interest rates, a stronger rand against the dollar and a cessation of load shedding.

Despite a more positive outlook on public finances, Efficient Group chief economist, Dawie Roodt, said the country was not yet out of the woods.

"Because of a lack of economic growth, the minister of finance’s revenue figures are likely to be under some pressure, although the two-pot system is likely to have given him a bit of a boost on revenue but overall revenue or tax collection is likely to be under some pressure."

Roodt said the latest round of wage negotiations for the public sector could again pinch the public purse, while also he warned the government to keep watch of the country's troubling debt pile.