Mid-term budget: Economists hope for stability in tax
An economist believes South Africa is not in a position to sustain workers' current demands for increased wages and benefits.
Sasfin Securities' David Shapiro has been sharing his thoughts ahead of Finance Minister Tito Mboweni's first Medium-Term Budget Policy Statement (MTBPS) on Wednesday.
Shapiro feels the economy is not growing enough to meet the needs of labour.
He says Mboweni's previous role as Labour Minister could help him better understand workers' needs and union demands - while also keeping the country's purse in check.
"We don't want to hear any increase in tax, wherever it is. There might be some help on that. I'm not sure if it's going to happen or not. I think it's going to be more about what lies ahead and where they are going to be focusing this economy rather than what's happened in the past. I think these numbers can be quite difficult to digest. This is a reflection of where we are and maybe it's a reality check to understand how tough things are here."
Mboweni will deliver his medium-term budget in Parliament at 2pm.