Medium Term Budget Policy Statement November 2023 shows strong reliance on private sector to increase investment

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Medium Term Budget Policy Statement November 2023 shows strong reliance on private sector to increase investment

The MTBPS delivered by Minister of Finance Enoch Godongwana on the 1st of November did not include extensive austerity cuts as broadly expected. It also did not include announcements of any significant infrastructure cuts, although conditional grants were cut by R9.2bn in 2023/24. However, it did include noteworthy revision to the country’s fiscal and economic outlook, with weaker economic growth now projected over the MTEF, a widening current account deficit to 3.1 percent of GDP and gross debt levels reaching R6 trillion by 2026. Despite the weaker economic and fiscal outlook, the growth outlook for gross fixed investment was revised significantly higher, with a strong focus on private sector participation that almost seems to be the “genie in the bottle” that will save the economy and revive economic growth.

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PULSE - MTBPS November 2023.pdf