tito mboweni lesotho

(in the pic – Minister Mboweni, DG and Acting Commissioner). Minister Tito Mboweni delivers the 2018 Medium Term Budget Policy Statement in parliament. 24/10/2018, Elmond Jioyane, GCIS

Mid-term budget speech in 13 quotes: Here’s what has changed for SA

Well, we knew it was going to be tough. Tito Mboweni has delivered his Mid-term budget to Parliament – we’ve got all the essential information here.

tito mboweni lesotho

(in the pic – Minister Mboweni, DG and Acting Commissioner). Minister Tito Mboweni delivers the 2018 Medium Term Budget Policy Statement in parliament. 24/10/2018, Elmond Jioyane, GCIS

The Mid-term budget speech promised a few tough decisions, and that’s what we have been handed. There wasn’t a “crash landing” as forecast by some conservative analysts, but there sure is a bit of turbulence to contend with. Tito Mboweni delivered the news in an uncompromising fashion, and the main takeaways from his daunting speech are as follows:

  • Growth for 2019 is down to 0.5% from 1.5%.
  • E-tolls are here to stay, as the government plan to “enforce” compliance.
  • Tax collection is 4% off where it wants to be, with more than R50 billion still to be recovered.
  • Eskom must “make-do” with the R69 billion windfall awarded earlier in the year until “progress is made”.
  • Politicians may soon face a wage-cut, as the budget for their state-funded cars and trips will be slashed.


Despite setting billions aside for infrastructure development and our crime-fighting bodies, the country will be reeling from Mboweni’s unflinching mid-term budget speech. Here are the highlights of his address:

Mid-term budget speech – 13 of Tito Mboweni’s most important quotes

Say Aloe to Tito’s Ferox plant…

“On Budget Day 2019, I brought a resilient Aloe Ferox plant to the House. Mr President, you might also remember that I presented an Aloe Ferox plant to you. This little aloe is emerging from a long winter.”

“During that winter, the ground became hard. The leaves fell from the trees and the air was bitterly cold. We toiled, hoping for better days. Our people became poorer. Some lost their jobs.”

Glum growth outlook at the Mid-term budget speech

“The economy is now forecast to grow at 0.5% in 2019 compared to the 1.5% expected in February. Growth is projected to slowly rise to 1.7% in 2022, supported by household consumption and private‐sector investment.”

A 10-point plan to kickstart the economy:

“We need: An efficient and capable state, Prudent fiscal and monetary policy, A competitive and flexible exchange rate, A trade regime which promotes open and beneficial trade, particularly with the rest of the African continent, A reimagined industrial strategy, Opening up ‘network industries’ that is transport, logistics and telecommunications. The reorganising Eskom and other state‐owned companies, Lowering barriers to entry, Prioritising job‐creating sectors, such as agriculture and tourism, and A well‐functioning financial sector.

Tax collection down

“Achieving a more inclusive South Africa relies on honest taxpayers. Without your taxes, South Africa will never succeed. Thank you to all those who have honoured their obligations. As it stands, we now expect to collect R1.37trn this year. This is R53bn, or 4%, less than we expected.”

Mid-term budget speech: Debt approaches some terrifying levels

“This year, the national debt exceeded R3trn. It is expected to rise to R4.5trn in the next three years. Clearly, we need to do things differently. As things stand, without any policy adjustments, debt will most likely exceed 70 per cent of GDP by 2022/23. Our little Aloe is not doing well. It needs attention, like our public finances.”

Money to be splurged in three key areas

“Over the medium‐term, consolidated government spending totals R6.3 trillion as things stand. Our priorities are education, social development and health.They will receive R3 trillion alone over the next three years.”

Talking tough on Eskom

“To meet unanticipated cash needs, we have brought forward R26bn in 2019/20, R33bn in 2020/21 and R10bn in 2021/20. Once I am convinced that the Eskom Board and Management have made an irrevocable commitment to implement government’s decisions and there is enough progress, we will negotiate the appropriate size of debt relief. Eskom is a business and should be run that way.”

Politicians will see benefits, wages trimmed according to Mid-term budget speech

“For the foreseeable future, Cabinet, Premiers and MECs’ salaries will be frozen at current levels, with the likelihood of an adjustment downwards. The cost of official cars will be capped at R700,000 VAT inclusive. All domestic travel will be on economy class tickets and there will no longer be payment for subsistence and travel for both domestic and international trips.”

E-tolls are here to stay

“Government has decided to retain the user pay principle and compliance will be strengthened. Not paying your tolls has already led to our roads deteriorating. I urge the nation to please pay your bills… We need to build a culture of payment, as government services can only be sustainable if all of us that can pay for them do so.”

Dropping half-a-trillion on Infrastructure

“The implementation team for the Infrastructure Fund is at work. They have already identified policy and regulatory hurdles. A pipeline of possible projects amounting to more than R500bn has been identified.”

Mid-term budget speech gives R2.3bn injection to fight crime, tax avoidance

“Through reprioritisation, the National Prosecuting Authority receives an additional R1.3bn, and the South African Revenue Service receives an additional R1bn for the next two years. These funding shifts will bolster efforts to combat corruption and improve revenue collection.”

No nationalising the Reserve Bank

“The South African Reserve Bank has, during a very difficult period, kept inflation stable. They also declared a substantially increased profit share to the government. It is a beautiful arrangement – we do not have to invest any money in the Bank, but we get almost all the profits plus taxes.”

Tito Mboweni ends Mid-term budget speech by thanking the Treasury… and the Boks

“A word of appreciation to the National Treasury Director General and his team. Their good humour and determination have got us through a difficult MTBPS. As I conclude, may I also wish the Springboks all the best this weekend.”