Minister Mboweni has confessed that the country owes a lot of people money, a statement he made during his budget speech; however, he placed the burden of improving the situation on working class South Africans.
The government took to Twitter on Wednesday, 24 February 2021, to share the details of Minister of Finance, Tito Mboweni’s budget speech. According to the minister, the speech was meant to provide a set of political and economic policies aimed at reducing the government’s spending.
However, the speech did not make mention of any remedial action that would inconvenience the government. Many analysts had claimed that if the ruling party were truly invested in fixing the economy, it would focus on reducing government spending.
Mboweni was quoted as saying, “Consequently, gross loan debt will increase from R3.95 trillion in the current fiscal year to R5.2 trillion in 2023/24. We owe a lot of people a lot of money.” He added, “Our public finances are dangerously overstretched. Our borrowing requirement will remain well above R500 billion in each year of the medium term, despite the modest improvements in our fiscal position.”
The economic reforms introduced are set to only affect the working class. Additionally, an increase in the price of petrol is likely to affect the price of goods and services. Moreover, the lack of mention of big business or spending reductions for members of Parliament and the cabinet raised concerns.
See the post below.
[Read] When Finance Minister Tito Mboweni steps up to the podium to deliver his Budget Speech in Parliament this afternoon, he will be faced with a mammoth task @TreasuryRSA @tito_mboweni #BudgetSpeech2021 #Budget2021 https://t.co/BhDzF5DlSS pic.twitter.com/RFigdLI2jA
— @SAgovnews (@SAgovnews) February 24, 2021