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#MTBPS 2018: 7 things you need to know

#MTBPS 2018: 7 things you need to know

Alternative Information & Development Centre (AIDC) | 24 October 2018




  1. No major surprises, in business as usual medium term budget policy statement. No aggressive austerity measures, but this doesn’t come as a shock given that it is an election year next year.
  2. Mboweni argued that many state owned companies need to be reconfigured. In the reconfiguration of SOEs there must be no holy cows. Read push to privatise SOE’s.
  3. Economic outlook has been revised down due to a technical recession and turmoil in international markets. Economic growth estimated to be 0.7% this year, rising to 2% over the medium term.
  4. Tax collections will be R27,4 billion less than expected, R 20bn due to increased VAT refunds and 7.4bn from lower personal income tax and corporate income tax collections.
  5. As of 1 April 2019, government will include bread flour, cake flour and sanitary pads in zero-rate items
  6. Announced the postponement of the carbon tax from January 2019 to June 2019.
  7. Highlighted the importance of fixing of SARS, some resources has been allocated to do this.

Read about what Mboweni should have done

  1. Heres how Mboweni can address unemployment and inequality
  2. Alternatives to permanent economic depression   
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