Tito Mboweni warns of imminent fiscal crisis

Tito Mboweni was one of the speakers at the Stellenbosch University’s centenary webinar, where he warned of an imminent fiscal crisis due to the widening gap between revenue and expenditure.

Minister of Finance, Tito Mboweni’s address on Friday, 9 October 2020, at Stellenbosch University’s centenary webinar was shared via a thread on Twitter by the National Treasury. The post revealed some of the concerns that Mboweni raised ahead of delivering his eagerly awaited Medium Term Budget Policy Statement.

A point shared by the thread was the minister’s fears of an imminent fiscal crisis. The minister based his fears on the growing gap between the country’s expenditure and revenue.

“Non-residents are selling South African bonds at an alarming rate,” Mboweni was quoted as saying. However, instead of proposing a way forward, the minister projected that the fiscal crisis might occur between 2024 and 2025.

See the posts below.

Minister @tito_mboweni speaking during @StellenboschUni University’s centenary webinar said: “We are headed for a fiscal crisis. Non-residents are selling South African bonds at an alarming rate.” #economy

— National Treasury (@TreasuryRSA) October 9, 2020

Minister @tito_mboweni speaking during @StellenboschUni University’s centenary webinar said: “A fiscal crisis is on its way by 2024/25 if we do not take serious measures to close the mouth of the hippopotamus (address the widening gap between revenue and expenditure).” #economy

— National Treasury (@TreasuryRSA) October 9, 2020

Sabelo Makhubo
s.makhubo@politicalanalysis.co.za