Let’s stop wasting money, Mr President! – Finance Minister Tito Mboweni

(The Money Show is brought to you by Nedbank. See Money Differently.)

Finance Minister Tito Mboweni delivers the 2018 Medium-Term Budget Policy Statement in Parliament on 24 October 2018. Picture: GCIS

Too much money goes missing! We must restore good governance and root out corruption…

Tito Mboweni, Minister of Finance

Many state-owned companies need to be reconfigured… radical measures are needed… There must be no holy cows…

Tito Mboweni, Minister of Finance

Finance Minister Tito Mboweni delivered his maiden Medium-Term Budget Policy Statement in Parliament on Wednesday.

Some “highlights” from the “mini-budget”:

  • Taxpayers will fork out R5 billion for yet another bailout of money-pit South African Airlines, on top of the R10 billion SAA received in December.

  • South Africans will bail out SA Express to the tune of R1.2 billion.

  • We’ll all give the still lossmaking Post Office R2.9 billion.

  • Mboweni says South Africa must reduce its national debt and the high cost of public sector salaries.

  • Treasury expects 0.7% GDP growth for the year, down from the 1.5% it forecasted in February.

  • There’s a plan to ease visa requirements to boost tourism and help those with scarce skills to work in South Africa.

  • There will be no new taxes, for now, and three additions to the basket of VAT zero-rated goods, namely white bread flour, cake flour and sanitary towels.

  • Government has committed to pouring R855.2 billion into public infrastructure over the next three years. It will also be spending more on public transport, education and health.

  • Public Transport infrastructure spending is set to rise to R101.1 billion, to build integrated transport networks in 13 cities - this includes Phase 2 of the MyCiti bus rapid transport system in Cape Town and the Rea Vaya in Johannesburg.

The Money Show’s Bruce Whitfield interviewed economist Thabi Leoka, Lumkile Mondi (Senior Lecturer at School of Economics and Business Science of the University of the Witwatersrand), Peter Attard Montalto (Head of Capital Markets Research at Intellidex) and Treasury's Duncan Pieterse.

Listen to the interviews in the audio below (and/or scroll down for more quotes from them).

I remain sceptical. Action speaks louder than words.

Lumkile Mondi, University of the Witwatersrand

I’m a lot more positive than I felt when he was announced as Finance Minister.

Thabi Leoka

There’s no real ability to produce more cuts, just before the election... We’re stuck where we are… I was expecting more consolidation… there’s quite a bit more borrowing…

Peter Attard Montalto, Intellidex

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