Expert predicts negative reaction to budget speech

Economist Dawie Roodt said as South Africa is a participant in the global economy and will therefore be affected by the issues brought up by the spread of COVID-19.

JOHANNESBURG - This year's budget is a highly anticipated one.

The economy's in the doldrums, and ratings agency Moody's is waiting to hear how Finance Minister Tito Mboweni plans to get South Africa out of trouble.

The minister is also expected to highlight just how he plans to deal with Eskom and SAA.

READ: Tax payers to feel the pinch in Wednesday's budget

Economist Dawie Roodt said as South Africa is a participant in the global economy and will therefore be affected by the issues brought up by the spread of COVID-19.

Roodt predicted the outcome of the Budget Speech would be negative, saying, "the Minister of Finance will be delivering a fiscal budget that will point to a fiscus that is very very deep in trouble financially."

He named the sluggish economy, rising fiscal debt, and precarious political backing for aggressive cuts to state spending as barriers to a positive outlook.

Source
eNCA