Presenting his supplementary budget in parliament last June, Mboweni said drastic action must be taken in the 2020 budget process to contain ballooning debt and debt-service costs, and narrow the budget deficit.

He proposed that the medium-term budget statement be directed by a zero-budget process where all expenses must be justified for each new period.

The medium-term expenditure framework process will be guided by the principle of zero budget from July onwards. This means that budgeting will be based on clearly set out policy priorities and therefore amounts will be accordingly allocated.

South Africa’s economy was projected to contract by 7.2% in 2020. Mboweni said debt-to-GDP was expected to jump to 81.8%.

Mboweni highlighted that these developments have forced the country to look at new sources of funding.

Treasury proposes an additional R25,5 billion for Social Development:
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