The EFF labels mini budget ‘a waste of time’

Godongwana is set to table the MTBPS in the National Assembly on Wednesday afternoon. 

The MTBPS, also referred to as the mini budget, outlines the government’s spending priorities and fiscal strategy for the next three years.

EFF Treasurer General Omphile Maotwe said that the minister has thus far failed to develop fiscal policies that would help build and grow the economy.

She said the EFF expects the minister to introduce strategic ways to stimulate economic growth, reduce poverty, reduce inequality and “fair financial management across government and its spheres of government”.

“Last year, when the GNU started, the projections of the minister for economic growth were 1.3%. At the end of the year, only 0.6% was recorded as the economic growth. So, they did not even grow the economy as they wanted to.”

Maotwe added that South Africa is in the middle of a crisis where the state is unable to provide basic services to its people.

“If the minister does not come with a completely different policy direction, we're still going to be in the situation we find ourselves in, and even worse than where we are now.”

At the same time, Efficient Group economist Dawie Roodt expects Godongwana to deliver a cautiously optimistic message, possibly announcing a lower inflation target of around 3%, which he believes would be a good sign for monetary stability.

However, he believes the economic growth forecast will be revised downward, reflecting weaker prospects than initially projected.

"The minister’s growth outlook is likely to be a little bit weaker than previously thought. But despite that, state revenue or tax collections are actually doing quite well — thanks to an aggressive SARS."

Roodt says stronger revenue collection means the fiscal deficit and debt levels may look slightly better, potentially improving South Africa’s credit rating outlook.

"That in itself could eventually lead to an upgrade in terms of the rating of South Africa."

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