#MTBPS 2018: 7 things you need to know
Alternative Information & Development Centre (AIDC) | 24 October 2018
- 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.
- 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.
- 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.
- 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.
- As of 1 April 2019, government will include bread flour, cake flour and sanitary pads in zero-rate items
- Announced the postponement of the carbon tax from January 2019 to June 2019.
- Highlighted the importance of fixing of SARS, some resources has been allocated to do this.
Read about what Mboweni should have done