Emergency budget by Mboweni requires firm and decisive action - Business for SA
Business for SA (B4SA) is warning that the government will be unable to fund the budget from domestic savings over the next three years and this will lead to the country having to raise a larger portion of capital in foreign markets.
The warning comes as Finance Minister Tito Mboweni is scheduled to deliver an emergency budget in Parliament on Wednesday.
Speaking to Bongani Bingwa B4SA senior executive Stavros Nicolaou says South Africa had a weak fiscal outlook in early March when Mboweni presented his budget.
Because of the COVID-19 pandemic, the fiscal outlook has deteriorated. We are facing an outlook of 6.8% budget deficit which is not good reading in anybody's books.Stavros Nicolaou, Senior executive - B4SA
The fundamental problem is that South Africa has an under collection of revenue of R300 billion and the expenditure keeps growing, he says.
This supplementary budget by Mboweni requires firm and decisive action from government and all social partners.Stavros Nicolaou, Senior executive - B4SA
Listen below to the full conversation: