Tito Mboweni Mid-term budget speech

Minister of Finance Mr Tito Mboweni as he prepares to present his 2019 Budget Speech during the Plenary of the National Assembly , 20 February 2019. Parliament, Cape Town. Elmond Jiyane, GCIS

Mid-term budget speech: Five things to expect on Wednesday

Over to you, Tito Mboweni. The Finance Minister has to deliver a Mid-term budget speech that won’t keep everyone happy. Here’s what you need to know.

Tito Mboweni Mid-term budget speech

Minister of Finance Mr Tito Mboweni as he prepares to present his 2019 Budget Speech during the Plenary of the National Assembly , 20 February 2019. Parliament, Cape Town. Elmond Jiyane, GCIS

Strap yourselves in, because Tito Mboweni is set to take us all on a bumpy ride on Wednesday. The Mid-term budget speech is set to be delivered by the Finance Minister, and South Africa may have to brace for impact.

What is the Mid-term budget speech?

The Mid-term budget speech sees the government lay out their financial plans for the next three years. As well as revisiting issues discussed from the previous year, the minister will look to introduce new funding models and policies which can be achieved through their proposed fiscal frameworks

Cyril Ramaphosa is coming up for his second year as president Despite winning an election in 2019, the gig has been far from comfortable for him. Plagued by accusations of corruption and money-laundering, it’s been an all-too-familiar tale from the ANC. And that includes stagnant economic growth, too – and it means the upcoming MTBS may bear some harsh realities for all South Africans.

What to expect from the Mid-term budget speech

Tough calls on Eskom

Pravin Gordhan faced the media on Tuesday to discuss the government’s plans for fixing Eskom. However, he still managed to keep his cards close to his chest. No official figures or debt-relief numbers were touted. That’s a job that is likely to land on Mboweni’s lap during the Mid-term budget speech.

We know that Eskom will officially unbundle itself, and that Gordhan wants the utility to foster more competition within the flailing SOE. But we aren’t yet aware of the full extent of the cost. It’s over to Minister Mboweni, who will have a hard time keeping everyone happy here.

A forecast of growth – or lack of it

The MTBS is a good chance for the government to take stock and assess where the country is heading. This usually involves an official statement on South Africa’s forecast growth. This year, like quite a few recent ones, promises nothing but bad news.

Some conservative estimates suggest Mzansi’s economy will struggle to top the 1% mark over the next 12 months. Those hoping for an upturn in fortunes will likely be disappointed, especially following the news on SA’s unemployment figures released on Tuesday. At 29.1%, joblessness is at an 11-year high.

A pushback against Nasrec resolutions

Tito Mboweni isn’t the kind of guy who takes things lying down… depending on who you talk to, anyway. He’s been at the centre of a few controversies since he became Finance Minister 12 months ago, and he doesn’t see eye-to-eye with a number of policies the ANC resolved to undertake in 2018.

He’s a big fan of e-tolls – so don’t expect him to chuck them out of the window – and Mboweni is a lot less willing to hand out bailouts than his comrades. However, his biggest clash in values comes with the nationalisation of the Reserve Bank. Some of his colleagues at the 2017 Elective Conference want to pursue this opportunity, but Mboweni is dead against it – and he’s not likely to give in on Wednesday.

Mid-term budget speech – expect more on National Health Insurance

The much-maligned NHI is a subject that will be on the table for years to come. Despite attempts to stop its progression from opposition parties, the ANC remain united on this front. We’ve been waiting ages on how this scheme will be budgeted, and Mboweni should shed some light on the matter during his MTBS.

Zero-rated items

We’ll take it you’ve had enough doom and gloom, then? Well, let’s finish on what could prove to be a positive note. Sanitary pads, baking flour and cake flour were all added to the list of items which will no longer be taxed on their value. We believe that two or three more items may sneak onto the list this week.