<p><iframe loading="lazy" src="https://www.youtube.com/embed/v3X-5zQqXM4" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>(Watch Full speech) &#8211; South Africa’s Finance Minister Enoch Godongwana delivers his 2023 Medium Term Budget Policy Statement&#8230;.</p>


SA Finance Minister Enoch Godongwana tables medium-term budget speech

<p><iframe loading="lazy" src="https://www.youtube.com/embed/417Q8-mqLGo" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>Joining CNBC Africa for this discussion is Zinhle Tyikwe, CEO, Consumer Goods Council of South Africa and Maarten Ackermans, Chief Economist, Citadel&#8230;.</p>


The Power Table: Medium Term Budget Preview


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-820x576.jpg" alt="" class="wp-image-424954" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-1536x1079.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/LA24V6GG4VKUROZCEGVVO63DKQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A street money changer counts South African Rands in Harare, Zimbabwe,  file.  REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



<p>JOHANNESBURG, Aug 1 (Reuters)&nbsp;&#8211;&nbsp;South Africa will overshoot its budget deficit target this year due to higher spending on public wages and an expected dip in tax receipts amid sluggish economic growth and lower commodity prices, economists told Reuters.</p>



<p>The National Treasury, which has in recent years worked to put South Africa on a sustainable fiscal path, in February projected that the consolidated budget deficit would narrow to 4.0% of GDP in the fiscal year ending in February 2024, the lowest in four years.</p>



<p>But the ailing economy, hit by South Africa&#8217;s worst ever power crisis, infrastructure bottlenecks and high unemployment, is exerting pressure on the public purse.</p>



<p>The budget deficit is likely to be between 0.5% and 1% above the 4% target for 2023/24, two economists said. London-based lender HSBC expects a deficit of 5.1% of GDP, while ratings agency Moody&#8217;s estimates it could reach 5.6%.</p>



<p>&#8220;We&#8217;re quite concerned that the overall fiscal deficit number is going to look worse,&#8221; said Sanisha Packirisamy, an economist at investment firm Momentum.</p>



<p>Packirisamy cited low growth, higher public wages, rising interest rates and lower tax receipts as some of the factors expected to impact the deficit.</p>



<p>Public sector unions and the government in March agreed to a 7.5% increase in wages. The treasury had factored in average annual increases of 3.3% to 2025/26.</p>



<p>The wage bill has a 37 billion rand ($2.05 billion) shortfall this year, Duncan Pieterse, deputy director general of the National Treasury, told Reuters.</p>



<p>The medium term budget policy statement (MTBPS) in October will outline a way to plug the gap, he said, without commenting on the budget deficit.</p>



<p>Thalia Petousis, a portfolio manager at asset manager Allan Gray, wrote in a May report that if the wage bill increases by 7% for another two years, it could hike the debt to GDP ratio to 80% by the end of 2025-26.</p>



<p>The treasury expects gross debt to stabilise at 73.6% of GDP in 2025/26.</p>



<h2 class="wp-block-heading" id="h-tax-receipts">TAX RECEIPTS</h2>



<p>HSBC economist David Faulkner said on Monday the latest data showing that corporate tax receipts fell by more than 20% year-on-year in June and mineral royalties dropped by 40%, suggested a budget deficit that could widen more than anticipated.</p>



<p>&#8220;How the government will respond to this deteriorating fiscal reality, and how it will meet a heavier set of financing demands, are likely to be key issues as we head towards the MTBPS in October,&#8221; Faulkner wrote in a note.</p>



<p>The treasury had banked on higher commodity prices boosting mining tax receipts.</p>



<p>But prices of South Africa&#8217;s biggest commodity export &#8211; platinum group metals &#8211; have fallen this year. Platinum prices are down 13% year to date, palladium has lost 27% and rhodium has seen its value erode by two-third.</p>



<p>Andrew Matheny of investment bank Goldman Sachs, however, was hopeful.</p>



<p>&#8220;The top line should still look very good because precious metal prices are still sky high, especially in rand terms,&#8221; he said, adding the budget deficit would land closer to 4.5% of GDP.</p>



<p>($1 = 18.0389 rand)</p>



<p>(Reporting by Kopano Gumbi; Editing by Promit Mukherjee, Olivia Kumwenda-Mtambo, and Angus MacSwan)</p>


FILE PHOTO: A street money changer counts South African Rands in Harare

South Africa’s budget deficit target at risk as wages rise, tax receipts fall

<p><iframe loading="lazy" src="https://www.youtube.com/embed/muS7zc5Vj4E" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>Gauteng Finance MEC, Jacob Mamabolo, tabled his maiden Provincial budget for 2023/2024 at the Gauteng Legislature yesterday. The Health Department was allocated R5 billion. CNBC Africa spoke to Health and Wellness MEC Nomantu Nkomo-Ralehoko&#8230;.</p>


Focus On Gauteng Budget 2023: Health Department receives a financial boost

<p><iframe loading="lazy" src="https://www.youtube.com/embed/VxA1WytARxE" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>(Watch Full speech) &#8211; Gauteng Provincial Government presents its budget for the year 2023/2024&#8230;.</p>


MEC Mamabolo delivers the 2023/24 Gauteng Provincial Budget

Gauteng MEC Jacob Mamabolo delivers 2023/24 Provincial Budget

<p><iframe loading="lazy" src="https://www.youtube.com/embed/l71vIT4hmM4" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>In his 2023 budget speech to parliament, South Africa’s Finance Minister Enoch Godongwana said government would take on R254 billion of Eskom’s R423 billion debt. Joining CNBC Africa for a post analysis is Patrick Bond, Professor of Sociology at the University of Johannesburg, Johann Els,  Chief Economist  at Old Mutual Investment Group, Jones Gondo, Senior Research Analyst at Nedbank CIB and Alex Gwala, Director and Global Business Tax Services Leader at Deloitte Africa&#8230;.</p>


Post-Budget Analysis: SA Minister Enoch Godongwana’s Budget 2023

<p><iframe loading="lazy" src="https://www.youtube.com/embed/zgYO3Zsgx5k" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>(Watch Full speech) &#8211; South Africa’s Finance Minister Enoch Godongwana delivers highly-anticipated 2023 budget in which he details measures to tackle Eskom’s R423 billion debt&#8230;.</p>


SA Finance Minister Enoch Godongwana delivers 2023 Budget Speech

<p><iframe loading="lazy" src="https://www.youtube.com/embed/dpHxRTFX9Ug" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>Gauteng MEC for Finance, Jacob Mamabolo delivered his maiden Mid-Term Budget Policy Statement for 2022/23. This Focus On segment brings some key voices from the Gauteng Legislature to gain insight into which sectors will receive the biggest portion of the budget&#8230;.</p>


Focus On Gauteng MTBPS: The key budget takeaways

<p><iframe loading="lazy" src="https://www.youtube.com/embed/Gh9ojkFtXQs" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>South African Minister of Finance Enoch Godongwana announced that the Gauteng provincial government is expected to contribute 30 per cent towards settling SANRAL’s debt, will the provincial government be able to balance this expense while still working towards their GGT2030 strategies? Join CNBC Africa as MEC for finance Jacob Mamabolo delivers his maiden Gauteng Mid-Term Budget policy statement for 2022/23&#8230;.</p>


MEC Mamabolo delivers the Gauteng Mid-Term Budget policy statement for 2022/23

<p><iframe loading="lazy" src="https://www.youtube.com/embed/czUG7PcDe8M" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>(Watch Full speech) &#8211; South Africa’s Finance Minister Enoch Godongwana delivered his Medium Term Budget Policy Statement with a focus on restoring service delivery and tackling Eskom’s $22 billion debt&#8230;.</p>


SA Finance Minister Enoch Godongwana delivers medium-term budget speech

<p><iframe loading="lazy" src="https://www.youtube.com/embed/VpgSWbIgV_0" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>Councillor Jolidee Matongo MMC of Finance for the City of Johannesburg Municipality, joins CNBC Africa&#8217;s Zinathi Gquma to discuss the allocation of the City&#8217;s budget for the year 2021/2022&#8230;.</p>


MMC Matongo breaks down key takeaways from City of Joburg’s 2021/22 budget

<div style="max-width: 100%;"></div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script></p>
<p>Tabling South Africa’s 2021 Budget this after, Minister Tito Mboweni said that government will stabilise debt at 88.9 per cent of GDP in 2025 and 2026. The Minister reported that South Africa’s economy is expected to rebound by 3.3 per cent this year, following a 7.2 per cent contraction in 2020. Joining CNBC Africa to review that budget is Maarten Ackerman, the Chief Economist at Citadel; Tendani Mantshimuli, Consumer Economist at Liberty &#038; Muneer Hassan, a Senior Lecturer for Taxation at the University of Johannesburg.</p>


#BudgetSpeech2021: A tax

#BudgetSpeech2021: A tax, economic review of Finmin Mboweni’s 2021 budget

<p><iframe loading="lazy" src="https://www.youtube.com/embed/fbVrcZ_Gpk0" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>Join this CNBC Africa panel of experts as they unpack the much anticipated 2021 budget speech by Finance Minister, Tito Mboweni&#8230;.</p>


#BudgetSpeech2021: Expert Analysis of finmin Mboweni’s 2021 Budget Speech


<p>Tabling South Africa’s 2021 Budget, Minister Tito Mboweni said that government will stabilise debt at 88.9 per cent of GDP in 2025 and 2026. The Minister reported that South Africa’s economy is expected to rebound by 3.3 per cent this year, following a 7.2 per cent contraction in 2020.</p>



<p>Download the ministers <a href="http://www.treasury.gov.za/documents/national%20budget/2021/speech/speech.pdf">full speech here.</a></p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="#BudgetSpeech2021: Expert Analysis of finmin Mboweni’s 2021 Budget Speech" width="500" height="281" src="https://www.youtube.com/embed/fbVrcZ_Gpk0?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div><figcaption>Watch this CNBC Africa panel of experts as they unpack the much anticipated 2021 budget speech by Finance Minister, Tito Mboweni.<br></figcaption></figure>



<h2 class="wp-block-heading" id="h-budget-highlights">Budget Highlights</h2>



<h3 class="wp-block-heading" id="h-budget-framework">Budget Framework</h3>



<ul class="wp-block-list"><li>The budget deficit has been revised to 14 per cent of GDP in 2020/21 in response to the spending and economic pressures of the COVID-19 pandemic.</li><li>Gross debt has increased from 65.6 per cent to 80.3 per cent of GDP for the year 2020/21.</li><li>The 2021 Budget proposes measures to narrow the main budget primary deficit from 7.5 per cent of GDP in the current year to 0.8 per cent in 2023/24.</li><li>The proposed fiscal framework will stabilise debt at 88.9 per cent of GDP in 2025/26.</li><li>Government will roll out a free mass COVID-19 vaccination campaign for which R9 billion has been allocated in the medium term.</li><li>Over the medium term, debt-service costs are expected to average 20.9 per cent of gross tax revenue.</li></ul>



<h3 class="wp-block-heading" id="h-spending-programs">Spending Programs</h3>



<ul class="wp-block-list"><li>Total consolidated spending amounts to R2 trillion each year over the medium term.</li><li>The bulk of the spending is allocated to learning and culture (R402.9 billion), social development (R335.2 billion) and health (R248.8 billion) in 2021/22.</li><li>The fastest-growing functions over the medium term are economic development, community development and general public services.</li><li>The majority of funding for new and urgent priorities is provided through reprioritisation and reallocation of existing baselines.</li></ul>



<h3 class="wp-block-heading" id="h-tax-proposals">Tax Proposals</h3>



<ul class="wp-block-list"><li>To support economic recovery, government will not raise any additional tax revenue in this budget.</li><li>The personal income tax brackets and rebates will increase above the inflation rate of 4 per cent.</li><li>Government will increase excise duties on alcohol and tobacco by 8 per cent for 2021/22.</li><li>Inflation-related increases of 15c/litre and 11c/litre will be implemented for the general fuel levy and the RAF levy, respectively, with effect from 7 April 2021.</li><li>The UIF contribution ceiling will be set at R17 711.58 per month from 1 March 2021.</li></ul>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">&quot;Main budget revenue is projected to be R1.35 trillion&quot; says Minster <a href="https://twitter.com/tito_mboweni?ref_src=twsrc%5Etfw">@tito_mboweni</a> <a href="https://twitter.com/hashtag/BudgetSpeech2021?src=hash&amp;ref_src=twsrc%5Etfw">#BudgetSpeech2021</a></p>&mdash; CNBC Africa (@cnbcafrica) <a href="https://twitter.com/cnbcafrica/status/1364548301870272518?ref_src=twsrc%5Etfw">February 24, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>


South Africa’s Finance Minister Mboweni’s Tough South African Budget Task

South Africa Budget: economy expected to grow by 3.3% in 2021 – Finance Minister

<p><iframe loading="lazy" src="https://www.youtube.com/embed/59LUtBHZPAE" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>Join this CNBC Africa panel of experts as they preview the much anticipated 2021 budget speech by Finance Minister, Tito Mboweni&#8230;.</p>


#BudgetSpeech2021: Here’s what business & markets expect from Finmin Mboweni’s 2021 budget speech

<div style="max-width: 100%;"></div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script></p>
<p>All eyes are on Budget this afternoon with Tito Mboweni. While some industries have already started recovering from the effects of the COVD-19 pandemic, there is still much work to be done. Gilbert Mosena, Acting CEO, National African Federated Chamber of Commerce and Industry, NAFCOC joins CNBC Africa for more.</p>


#BudgetSpeech2021: NAFCOC calls for more focus on SME support & growth


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1230609367-820x547.jpeg" alt="" class="wp-image-397874" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1230609367-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1230609367-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1230609367-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1230609367-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1230609367-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Tatenda Chivaura, head brewer, checks the bubbler of a beer barrel at Mad Giant Brewery, in Newtown, Johannesburg, on January 15, 2021. &#8211; Craft breweries in South Africa had to adjust their operations to survive the third alcohol ban, where buying and transporting alcoholic beverages is prohibited, imposed by the government to help curb the spread of COVID-19.
Mad Giant Brewery has reconverted part of his staff to the production of hydroalcoholic gel. During the first wave of the pandemic, this new activity kept him afloat. But this time it&#8217;s a bit harder. (Photo by Luca Sola / AFP) (Photo by LUCA SOLA/AFP via Getty Images)</figcaption></figure>



<p>CAPE TOWN, February 21 (ANA) – The Beer Association of South Africa (Basa) has called on Finance Minister Tito Mboweni to offer the industry some tax relief ahead of his <a href="https://www.cnbcafrica.com/2021/south-africa-readies-most-important-budget-yet-as-recovery-hangs-in-the-balance/">budget speech scheduled for Wednesday</a>.</p>



<p>“We believe this is the least that government can do to help our members, especially small craft brewers, whose businesses have been devastated by 19 weeks of restricted trading,” Basa said in a statement on Sunday.</p>



<p>To help rebuild the local beer industry, Basa urged Mboweni to make a commitment not to increase excise taxes for the forthcoming financial year.</p>



<p>“At the very least, we call on him to commit to a below-inflation increase in excise taxes on beer. We need to save jobs and livelihoods, but we cannot do so without any targeted relief from government,” Basa said.</p>



<p>“We think that government’s unexpected R100 billion revenue windfall is an opportunity to offer some tax relief to businesses that were shut down by government for long periods.”</p>



<p>The <a href="https://www.cnbcafrica.com/media/6224400638001/new-alcohol-ban-having-a-devastating-effect-on-sas-wine-and-hospitality-industry/">three blanket bans on alcohol</a> – due to Covid-19 regulations – had resulted in beer sales declining by 195 million litres since March last year.</p>



<p>“We have seen small businesses and craft breweries take the greatest of hits, with a survey conducted by our member, the Craft Brewer’s Association, indicating that 87.5 percent of craft breweries were at risk of shutting down following the third blanket ban on alcohol sales. The majority of these businesses have no certainty of survival beyond the end of February,” Basa said.</p>



<p>The overall potential sales revenue lost from the alcohol industry amounted to R36.3 billion with a total annualised loss to GDP at R51.9 billion, which was equivalent to one percent of GDP. More worrying still, were the 200,200 jobs which remained at risk within the alcohol industry, “which is staggering for survival under present conditions”.</p>



<p>“Basa would like to reiterate that there is a desperate need for other payment deferrals and financial relief in terms of automatic liquor licence renewals if we are to have any hope of saving the businesses that remain standing.”</p>



<p>Since the beginning of the pandemic, the beer industry had contributed to mitigating the economic effects of the lockdown on the poor and homeless. Over four million meals had been served to hungry South Africans, using craft brewers’ funds, premises, staff, and distribution networks.</p>



<p>One Cape Town brewery, the Woodstock Brewery, had served 2.9 million meals to hungry Capetonians after a massive fundraising campaign among craft beer enthusiasts.</p>



<p>“This business is one that is now sadly faced with closure as a result of lost revenues. It is a truly tragic reality to witness those who have fed others go hungry themselves.</p>



<p>“While Basa remains committed to working openly and transparently with government, we cannot continue to keep businesses alive as an industry association alone.“</p>



<p>National government needed to come to the table – and fast – if it did not want to increase South Africa’s already exceptionally high unemployment rate of 30.8 percent, Basa said.</p>



<p>Basa comprises of the Craft Brewers Association, Heineken South Africa, and South African Breweries.</p>



<p>– African News Agency (ANA), editing by Jacques Keet</p>


South Africa Budget Day

SA Finance Minister Enoch Godongwana tables medium-term budget speech

The Power Table: Medium Term Budget Preview

South Africa’s budget deficit target at risk as wages rise, tax receipts fall

Focus On Gauteng Budget 2023: Health Department receives a financial boost

Gauteng MEC Jacob Mamabolo delivers 2023/24 Provincial Budget

Post-Budget Analysis: SA Minister Enoch Godongwana’s Budget 2023

SA Finance Minister Enoch Godongwana delivers 2023 Budget Speech

Focus On Gauteng MTBPS: The key budget takeaways

MEC Mamabolo delivers the Gauteng Mid-Term Budget policy statement for 2022/23

SA Finance Minister Enoch Godongwana delivers medium-term budget speech

MMC Matongo breaks down key takeaways from City of Joburg’s 2021/22 budget

#BudgetSpeech2021: A tax, economic review of Finmin Mboweni’s 2021 budget

#BudgetSpeech2021: Expert Analysis of finmin Mboweni’s 2021 Budget Speech

South Africa Budget: economy expected to grow by 3.3% in 2021 – Finance Minister

#BudgetSpeech2021: Here’s what business & markets expect from Finmin Mboweni’s 2021 budget speech

#BudgetSpeech2021: NAFCOC calls for more focus on SME support & growth

Beer Industry Calls On Finance Minister Mboweni For Tax Relief To Save Jobs And Livelihoods

News Tips

Advertise With Us

South Africa Budget Day

SA Finance Minister Enoch Godongwana tables medium-term budget speech

The Power Table: Medium Term Budget Preview

South Africa’s budget deficit target at risk as wages rise, tax receipts fall

Focus On Gauteng Budget 2023: Health Department receives a financial boost

Gauteng MEC Jacob Mamabolo delivers 2023/24 Provincial Budget

Post-Budget Analysis: SA Minister Enoch Godongwana’s Budget 2023

SA Finance Minister Enoch Godongwana delivers 2023 Budget Speech

Focus On Gauteng MTBPS: The key budget takeaways

MEC Mamabolo delivers the Gauteng Mid-Term Budget policy statement for 2022/23

SA Finance Minister Enoch Godongwana delivers medium-term budget speech

MMC Matongo breaks down key takeaways from City of Joburg’s 2021/22 budget

#BudgetSpeech2021: A tax, economic review of Finmin Mboweni’s 2021 budget

#BudgetSpeech2021: Expert Analysis of finmin Mboweni’s 2021 Budget Speech

South Africa Budget: economy expected to grow by 3.3% in 2021 – Finance Minister

#BudgetSpeech2021: Here’s what business & markets expect from Finmin Mboweni’s 2021 budget speech

#BudgetSpeech2021: NAFCOC calls for more focus on SME support & growth

Beer Industry Calls On Finance Minister Mboweni For Tax Relief To Save Jobs And Livelihoods

News Tips

Advertise With Us

Newsletters