Finance Minister Tito Mboweni will deliver the Medium-Term Budget Policy Statement on Wednesday.
CapeTalk's Kieno Kammies spoke to Nedbank economist Dennis Dykes to find out what we can expect.
The first thing that analysts are going to look at will be financial dynamics to see whether the deficits are going to be brought under control over the next three years.— Dennis Dykes, chief economist at Nedbank
Most analysts would say as long as you keep it under 4% this year and in the next couple of years keep at 3.5%, then it shouldn't be too negative for overall debt because we know the rating agencies are going to be all over these figures.— Dennis Dykes, chief economist at Nedbank
The credibility of the numbers will also be very important - do the revenue numbers make sense and is the government trying to keep expenditure under control?— Dennis Dykes, chief economist at Nedbank
Dykes dismissed speculation that VAT might go up saying that he doesn't think the finance minister will make big announcements in a mid-term budget especially not so close to the elections.
In a medium-term budget, they never really adjust taxation. There might be some hints of what they actually want to do going forward.— Dennis Dykes, Chief Economist at Nedbank
Meanwhile Mboweni took to Twitter asking South Africans what they would like him to announce during his Medium Term Budget Policy Statement.
Let us do something unusual which will annoy the Establishment. If you were Minister of Finance, what would you announce on Wednesday next week. It is time for the Medium Term Budget Policy Statement (MTBPS). Over to you. Don’t tell the Establishment about this tweet!!— Tito Mboweni (@tito_mboweni) October 19, 2018
To hear the rest of the conversation with Dennis Dykes, listen below:
This article first appeared on CapeTalk : #MTBPS2018: 'Mboweni's mid-term budget'-drastic changes unlikely say economists