{"id":54917,"date":"2023-10-12T17:42:29","date_gmt":"2023-10-12T17:42:29","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget"},"modified":"2023-10-12T18:10:09","modified_gmt":"2023-10-12T18:10:09","slug":"concerns-over-south-africas-medium-term-budget","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget","title":{"rendered":"Concerns over South Africa\u2019s medium-term budget"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>South Africa\u2019s fiscal metrics will likely show some deterioration when Finance Minister Enoch Godongwana announces the Medium-Term Budget Policy Statement (MTBPS) on 1 November.<\/p>\n

Investec Chief Economist Annabel Bishop said that Godongwana has already warned that the country needs to cut back on expenditure as revenue collections have faltered amid low economic growth and a poor export year.<\/p>\n

Failures at Eskom and Transnet have particularly hurt the nation\u2019s economic performance, with the MTBPS expected to give an update on the debt of both SOEs.<\/p>\n

\u201cInflation will come out closer to 6.0% y\/y for this year versus the 5.3% y\/y forecast in February, which would boost nominal GDP somewhat, but both the fiscal debt and deficit outcomes are likely to be higher for the current fiscal year than projected on overspending and revenue underruns,\u201d Bishop said.<\/p>\n

\u201cThe budget deficit for 2023\/24 was projected at -4.0% of GDP, but we now expect -4.5%, with 2024\/25 estimated at -3.8% and 2025\/26 at -3.2% (likely -4.0% and -3.4% instead, respectively).\u201d<\/p>\n

Although the gross loan debt for the current fiscal year (2023\/24) was expected to reach 72.2% of GDP in the February Budget review for 2023, far higher government spending \u2013 following a 7.5% public sector wage increase for 2023\/24 \u2013 places pressure on debt ratios in an environment of declining revenues.<\/p>\n

For instance, Stats SA noted that company tax collection has disappointed this last financial year, as the local mining industry \u2013 a major bright spark last year \u2013 more than halved its contributions in Q2 2023.<\/p>\n

The fiscal debt and deficit ratios will thus depend on the government and businesses\u2019 success in turning around the state\u2019s logistics and power utilities.<\/p>\n

Climate change costs will also feature at the MTBPS, even if South Africa mainly focuses on bringing on renewable energy projects. With the government stating that it plans to add or recover 12,000 MW by the end of next year, load shedding should start to ease.<\/p>\n

\u201cHowever, faster economic growth adds to demand-side pressure, and next year GDP growth is expected to rise to 1.2% y\/y,\u201d Bishop said.
\n
\nAlthough Moody\u2019s said in February that it did not expect a significant widening of the fiscal deficit due to predicted abundant spending cuts, Bishop noted that the government has not cut spending, which could worsen the fiscal ratio.<\/p>\n

\u201cSouth Africa will need to see a curb on expenditure and higher revenues for the rest of the 2023\/24 fiscal year to achieve its fiscal estimates, and markets are wary that in a low growth environment with high, and rising, bond yields this becomes more difficult,\u201d Bishop said.<\/p>\n

\u201cThe MTBPS will be scrutinised for cost-saving measures that will allow the fiscal projections to be met. SA\u2019s borrowings are already unsustainable, at well above the EM (emerging market) limit of 60% of GDP, and previously set to rise higher, undermining the rand, and adding to higher borrowing costs.\u201d<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. South Africa\u2019s fiscal metrics will likely show some deterioration when Finance Minister Enoch Godongwana announces the Medium-Term Budget Policy Statement (MTBPS) on 1 November. Investec Chief Economist Annabel Bishop said that Godongwana has already warned that the country needs to cut back on expenditure as revenue collections have faltered amid low economic […]<\/p>\n","protected":false},"author":84,"featured_media":54915,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,275],"class_list":["post-54917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nConcerns over South Africa\u2019s medium-term budget - South Africa<\/title>\n<meta name=\"description\" content=\"South Africa\u2019s fiscal metrics will likely show some deterioration when Finance Minister Enoch Godongwana announces the M ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Concerns over South Africa\u2019s medium-term budget\" \/>\n<meta property=\"og:description\" content=\"South Africa\u2019s fiscal metrics will likely show some deterioration when Finance Minister Enoch Godongwana announces the M ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-12T17:42:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-12T18:10:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"672\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Concerns over South Africa\u2019s medium-term budget\",\"datePublished\":\"2023-10-12T17:42:29+00:00\",\"dateModified\":\"2023-10-12T18:10:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget\"},\"wordCount\":487,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget\",\"name\":\"Concerns over South Africa\u2019s medium-term budget - South Africa\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg\",\"datePublished\":\"2023-10-12T17:42:29+00:00\",\"dateModified\":\"2023-10-12T18:10:09+00:00\",\"author\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"description\":\"South Africa\u2019s fiscal metrics will likely show some deterioration when Finance Minister Enoch Godongwana announces the M ...\",\"breadcrumb\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#primaryimage\",\"url\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg\",\"contentUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg\",\"width\":1024,\"height\":672,\"caption\":\"Concerns over South Africa\u2019s medium-term budget\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.africa-press.net\/south-africa\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Concerns over South Africa\u2019s medium-term budget\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#website\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/\",\"name\":\"South Africa\",\"description\":\"Just another Africa News Agency Sites site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.africa-press.net\/south-africa\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\",\"name\":\"cfeditoren\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"caption\":\"cfeditoren\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Concerns over South Africa\u2019s medium-term budget - South Africa","description":"South Africa\u2019s fiscal metrics will likely show some deterioration when Finance Minister Enoch Godongwana announces the M ...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget","og_locale":"en_US","og_type":"article","og_title":"Concerns over South Africa\u2019s medium-term budget","og_description":"South Africa\u2019s fiscal metrics will likely show some deterioration when Finance Minister Enoch Godongwana announces the M ...","og_url":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget","og_site_name":"South Africa","article_publisher":"https:\/\/www.facebook.com\/AfricaPressTunisiaa","article_published_time":"2023-10-12T17:42:29+00:00","article_modified_time":"2023-10-12T18:10:09+00:00","og_image":[{"width":1024,"height":672,"url":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg","type":"image\/jpeg"}],"author":"cfeditoren","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cfeditoren","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#article","isPartOf":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget"},"author":{"name":"cfeditoren","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"headline":"Concerns over South Africa\u2019s medium-term budget","datePublished":"2023-10-12T17:42:29+00:00","dateModified":"2023-10-12T18:10:09+00:00","mainEntityOfPage":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget"},"wordCount":487,"commentCount":0,"image":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg","keywords":["Africa Press","Africa Press-South-Africa","South-Africa"],"articleSection":["all news","economy"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget","url":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget","name":"Concerns over South Africa\u2019s medium-term budget - South Africa","isPartOf":{"@id":"https:\/\/www.africa-press.net\/south-africa\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#primaryimage"},"image":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg","datePublished":"2023-10-12T17:42:29+00:00","dateModified":"2023-10-12T18:10:09+00:00","author":{"@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"description":"South Africa\u2019s fiscal metrics will likely show some deterioration when Finance Minister Enoch Godongwana announces the M ...","breadcrumb":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#primaryimage","url":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg","contentUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1697121559.350281.jpg","width":1024,"height":672,"caption":"Concerns over South Africa\u2019s medium-term budget"},{"@type":"BreadcrumbList","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/concerns-over-south-africas-medium-term-budget#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.africa-press.net\/south-africa\/"},{"@type":"ListItem","position":2,"name":"Concerns over South Africa\u2019s medium-term budget"}]},{"@type":"WebSite","@id":"https:\/\/www.africa-press.net\/south-africa\/#website","url":"https:\/\/www.africa-press.net\/south-africa\/","name":"South Africa","description":"Just another Africa News Agency Sites site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.africa-press.net\/south-africa\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb","name":"cfeditoren","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","caption":"cfeditoren"}}]}},"_links":{"self":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts\/54917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/comments?post=54917"}],"version-history":[{"count":0,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts\/54917\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/media\/54915"}],"wp:attachment":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/media?parent=54917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/categories?post=54917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/tags?post=54917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}