The cabinet has decided to extend the Social Relief of Distress grant to the end of January 2021. Personal income tax relief through inflation adjustments in all brackets was proposed. This allocation is funded through reductions to the baselines of national departments, public entities and conditional grants. The stock of gross debt will rise from roughly R4-trillion this year to R5.5-trillion in 2023/2024. Fragile alcohol industry warns fourth ban will be ... More than R30bn for health and other front-line services, Support vulnerable households which is now in excess of R50bn, More than R40bn for wage protection through the UIF, Around R100bn for job creation initiatives, which will now be spread over the MTEF, R20bn towards municipalities to assist them with COVID-19 related activities, Make it easier to do business. Now, however, at such elevated real interest rates, every additional rand gets us less than a rand of GDP. The mini-budget outlines fiscal policy proposals, which are followed by sectorial allocations. Gross tax revenue is revised down but this is offset by other receipts into the National Revenue Fund. At this stage, it looks like there will be a strong rebound in the next quarter. Subsidies of R2.2bn will support the Social Housing Programme aimed at poor, working South Africans. We must continue to defeat the corrupt and plug the loopholes. Font size: - +. We act to instil confidence among discouraged work seekers, businesses bruised by lockdown and facing uncertainty, farmers and farm workers who produce the food for the country, and our international partners who know that SA is a great place to invest. Progress on zero-based budgeting and spending reviews. Freedom was only two weeks old. Over the next 15 years, the economy began to re-emerge. Minister Tito Mboweni tables the 2020 Medium Term Budget Policy Statement, 28 October 2020 by GovernmentZA Minister Tito Mboweni tables the 2020 Medium Term Budget Policy Statement, 28 October 2020 by GovernmentZA Your Choices Regarding Cookies on this Site. Next year, emerging market countries are set to grow by 6%. Honourable speaker, members of the House. Would you like to comment on this article or view other readers' comments? They have the responsibility for steering the consideration of the tax bills, giving effect to the revenue proposals as announced in the 2020 Annual Budget in February and related tax administration matters. The 2020 Medium Term Budget Policy Statement It may even subtract GDP, leaving us poorer and more indebted than before. The 2020 Medium-Term Budget Policy Statement (MTBPS) is set to be delivered by the Minister of Finance, Mr Tito Mboweni, on Wednesday, 28 October against a tumultuous economic backdrop exacerbated by the COVID-19 pandemic. Today we embrace our higher purpose as citizens and leaders to take forward the vision of nation-building. As always, Africa has been at the forefront of innovative solutions to the crisis, including delivering social assistance using digital technology. Take a look at the key figures announced by Finance Minister Tito Mboweni during his medium-term budget policy statement on 28 October 2020. Still we cannot expect our civil service to carry the burden of nation building alone. Over the past five years, public sector employee compensation grew by 7.2% a year on average — well above inflation. The medium-term fiscal strategy narrows the main budget primary deficit from an expected R266bn in 2021/2022 to R84bn in 2023/2024 and we achieve a surplus by 2025/2026. 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Read more at the SA government's online coronavirus portal or use the 24-hour public hotline: 0800 029 999. The crisis has highlighted and unfortunately widened inequality. The 2020 Medium-Term Budget Policy Statement (MTBPS) is set to be delivered by the Minister of Finance, Mr Tito Mboweni, on Wednesday, 28 October against a tumultuous economic backdrop exacerbated by the COVID-19 pandemic. The Covid-19 pandemic has given rise to shameful and exploitative acts of corruption. Some might ask: can we not just spend our way out of the present crisis? The resources for the relief package came from a variety of places, including drawing down on Unemployment Insurance Fund (UIF) reserves, the issuing of new guarantees and projected revenue losses. Parliament plays an important role in this reform agenda. Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January. The recently published Stats SA figures show that unemployment rate (using the expanded definition) was 42% in the second quarter of 2020. The District Development Model will fast-track infrastructure and general socio-economic development. The Medium-Term Budget Policy Statement coincides today with another important process, the tabling of the tax Bills. Finally, we express our appreciation to the people of SA who continue to walk with us as we chart the way to a promising destination. Work is well advanced to modernise the cross-border flows management regime to support SA’s growth as an investment and financial hub for Africa. The economy is now expected to contract by 7.8 % this year, and the 2021 outlook is more uncertain. What did the minister really say in the medium term budget policy statement? Freedom was only two weeks old. We wish to thank them all for the seriousness with which they approach this matter. Progress is being made in allowing municipalities to buy electricity from different sources. Our compatriots in the private sector have made sacrifices and even negotiated salary cuts to keep businesses afloat. ARTICLE ENQUIRY SAVE THIS ARTICLE EMAIL THIS ARTICLE. Most Viewed . The Minister of Finance, Mr Tito Mboweni MP, has requested the Speaker of the National Assembly to enable him to table the 2020 Medium Term Budget Policy Statement (MTBPS) on Wednesday 28th October 2020. Mr President, our government, under your wise leadership, has championed the Infrastructure Fund to implementation. The budget cuts are drastic, with national government proposing to reduce spending on compensation of employees by R310.5 billion over the medium term via a “wage freeze” between 2020/21 and 2023/24. Further, South Africa is facing a significant shortfall in revenue collection due to the COVID-19 lockdown and other economic factors, according to the Parliamentary Budget Office (PBO). This adjustments appropriation also adds R1bn for food relief to fight hunger. Mr President, by putting all our efforts into implementing the Economic Reconstruction and Recovery Plan, we can accelerate growth to 3% or more. The Act requires the National Given the economic situation then, government proposed a three-year fiscal consolidation. The temporary increases in other grants will unfortunately have to come to an end. The Gospel according to John chapter 12 verse 35 warns us: “You are going to have the light just a little while longer. Our job is not to tremble in fear at the storm blast, neither at plagues nor at the wide-open mouth of the hippopotamus. Our little Aloe Ferox has survived! The delivery of the budget comes on the heels of the delivery of the economic reconstruction and recovery plan by President Cyril Ramaphosa on the 15th October 2020. Job losses have been particularly severe. The economy, already in a recession before the pandemic, has plummeted as a result of COVID-19 and subsequent lockdown regulations. To reach the poorest SA households, we expanded social protection. The majority of health spending takes place at provincial level. However, despite these proposed budget cuts: The cabinet remains resolute and will walk through the narrow gate towards fiscal sustainability. We are grateful for the constructive discussions. Over the next five years, it will need to grow much, much. We also wish to thank the governor of the SA Reserve Bank, Mr Lesetja Kganyago and his staff for their co-operation with us. The mid-term budget also includes information on: • Spending estimates for the first half of the current year (2020); • Any adjustments to the proposed revenue and spending estimates for the second half of the current year; and. Mid-term budget policy statement highlights 2020 The economy is expected to contract by 7.8% in 2020, while gross debt is expected to rise to R5.5 trillion in 2023/24 fiscal year. Consideration should be given to the proposal for across-the-board compensation pay reductions to management-level positions, across national, provincial and municipal governments, state-owned entities all other senior public representatives. We must rebuild our economy, rehabilitate our public finances and recover from the devastation wrought upon us by Covid-19. Infrastructure is at the centre of the plan. The June 2020 Special Adjustments Budget was prepared in an environment of extreme uncertainty. The move is likely to heighten tension with unions, which are already fighting to overturn government’s decision not to implement fully a three-year ... READ IN FULL: Medium-term budget policy statement 2020, Finance minister Tito Mboweni delivered the MTBPS on Wednesday afternoon in Parliament, Finance Minister, Tito Mboweni during his Medium-Term Budget Speech in parliament in Cape Town on October 28 2020. Click here to read and watch the latest news about the 2020 Medium-Term Budget Policy Statement. You can find more on PA's blog. Right now, government is borrowing at a rate of R2.1bn per day. Together we can shape a new destiny for our great, vibrant, beautiful country. Given the economic situation then, government proposed a three-year fiscal consolidation. The revitalisation of SARS is expected to contribute to increased tax revenue over the medium term. Please read our Comment Policy before commenting. Q&A: What is the maximum interest on arrear sectional title levies? We must discard those things that we no longer need to do and scale up those that are essential for progress. The Medium-Term Budget Policy Statement is taking place on 30 October 2019, and taxpayers anticipate significant shortfalls in tax collections and associated downward revision … We propose consolidated spending of R6.2-trillion over the 2021 Medium Term Expenditure Framework (MTEF), of which R1.2-trillion goes to learning and culture, R978bn to social development and R724bn to health. We thank this House for fast-tracking the Economic Regulation of Transport Bill. Madiba challenged us to: Meet despair with hope and death with a reaffirmation of the beauty of life. The 2020 Medium Term Budget Policy Statement (MTBPS) has prioritised economic recovery and fiscal consolidation in the medium-term. In a presentation ahead of the Minister’s mini-budget statement on Wednesday, the PBO pointed out that the cost-of-revenue collection ratio continued to decline from 0.97 in 2014/15 to 0.78 in 2019/2020. 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