The good, the bad, and the ugly from the mini budget

Following Finance Minister, Tito Mboweni’s medium-term budget policy statement on Wednesday, the good, the bad, and the ugly have been picked apart by economists and civil society.

The good

According to Economist Francois Stofberg: “Any economist or analyst would kind of be excited about the budget. “

He notes that Mboweni painted a bleak picture of the South African economy and the need, therefore, to implement far-reaching reforms.

"Our expenditure continues to exceed our revenue. Our national debt is increasing at an unsustainable pace. The economy is not performing well," said Mboweni.

ALSO READ: Mboweni paints grim picture for SA economy

However, Stofberg is skeptical about the political power to enforce the needed changes.

Mboweni also noted on Wednesday that future state-owned enterprises should get used to not receiving money from the national budget in future.

Mboweni believes the time has come for the cash-strapped companies to stand on their own feet.

ALSO READ: Mboweni to Eskom: Time to stand on your own feet

The bad

Mboweni hinted in his speech that the contentious Gauteng e-toll system is here to stay and users will have to cough up to use the roads.

The Automobile Association (AA) has said it is greatly is disheartened by this.

“We find it hard to believe that based on submissions government received anyone apart from SANRAL supported the idea of retaining the current system. We have data that indicates users will continue not to pay, and that the system is doomed to failure should it be kept in its current format,” said the AA in a statement.

ALSO READ: Mboweni hints that e-tolls are here to stay

 Mboweni said the rearrangement of the e-tolls and its financing will be determined by his department together with the Minister of Transport Fikile Mbalula and Gauteng Premier David Makhura and his executive council.

Mbalula is expected to make an announcement in this regard soon.

The Ugly

Government’s wage bill has come in for a lot of criticism, especially after Mboweni said on Wednesday that there are 29,000 millionaires in the state’s employ – government workers earning a million rand year.

This includes public servants, members of the national executive, Members of Parliament (MPs), and members of the provincial executive.

The South African Federation of Trade Unions (Saftu) said in response to the min-budget: “Treasury has turned its back on the poor majority, so as to serve the interests of the tiny community of the multi-millionaires and billionaires. They are smiling today because their wealth is not touched not threatened. The working class will see deeper levels of budget cuts which will worsen their living conditions whilst not helping to grow the economy.”

ALSO READ: Mixed reaction to Mboweni’s mini budget