Mboweni proposes R6.2trln consolidated spending over 2021 medium-term expenditure

CAPE TOWN – Finance Minister Tito Mboweni on Wednesday proposed consolidated spending of R6.2 trillion over the 2021 Medium-term Expenditure Framework, of which R1.2 trillion goes to learning and culture, R978 billion to social development and R724 billion to health.

Mboweni made this proposal when delivering his Medium-term Budget Policy Statement where he forecast the South African economy to grow by 3.3 percent in 2021, percent in 2022 and 1.5 per cent in 2023.

Mboweni said: “The June 2020 Special Adjustments Budget was prepared in an environment of extreme uncertainty. Given the economic situation then, the government proposed a three-year fiscal consolidation.

“Since June, more data has become available. The economy is now expected to contract by 7.8 percent this year, and the 2021 outlook is more uncertain. Job losses have been particularly severe.”

The minister, however, said the National Treasury could not allow the recent fiscal weakness and the pandemic to turn into a sovereign debt crisis.