Medium-term budget: Austerity will tip country into a recession - Duma Gqubule

Economic experts say Minister of Finance Tito Mboweni is set to deliver the Medium Term Budget Policy Statement (MTBPS) in the worst post-apartheid economic crisis the country has ever faced.

Mboweni will deliver the MTBPS along with the Treasury's finalised economic strategy on economic transformation, inclusive growth and competitiveness.

Refilwe Moloto speaks to Wits School of Economics and Business Science senior lecturer Lumkile Mondi, Centre of Economic Development & Transformation founding director Duma Gqubule and Simple Tax director Matthew Haddon about what to the minister might include in the budget.

RELATED: MTBPS: Tito Mboweni faces a stagnating, unemployed nation drowning in Eskom debt

Look at why other SOEs [state-owned enterprises] continue to be in state hands when they are bleeding the South African economy while the state of our finances is so poor.

Lumkile Mondi, Senior lecturer - Wits School of Economics and Business Science

Identification of key areas where we can help create employment, that would then underpin the budget that the minister of finance will present.

Lumkile Mondi, Senior lecturer - Wits School of Economics and Business Science

Gqubule argues that the budget is not an accounting exercise the context in which it takes place is that South Africa is in the worst post-apartheid economic crisis.

He will present his economic growth strategy and a plan for Eskom. For me, I think it is the wrong time to be having austerity, it will tip the country into a recession.

Duma Gqubule, Founding director - Centre of Economic Development & Transformation

For me, I am looking at the economic growth forecast.

Duma Gqubule, Founding director - Centre of Economic Development & Transformation

Haddon says he would like to see what Sars [South African Revenue Service] does in terms of austerity measures.

I don't see much going on as far as tax changes go. I don't see Sars pushing their budget up.

Matthew Haddon, Director - Simple Tax

I would like to see what Sars actually does as far as austerity measures go, will they be tightening their belts like the rest of us?

Matthew Haddon, Director - Simple Tax

Listen to the full interview below...


This article first appeared on CapeTalk : Medium-term budget: Austerity will tip country into a recession - Duma Gqubule


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