Budget Speech: Government needs to reduce expenditure, expert says

On Wednesday, Finance Minister, Tito Mboweni is expected to deliver what's being touted as one of the most important budgets yet. Investment experts say this speech needs to move beyond promises and provide practical solutions to the country's debt sustainability and boosting growth through structural reforms. #eNCA​ Courtesy #DStv403

JOHANNESBURG - Finance minister Tito Mboweni needs to reduce government expenditure if the country is to move in the right direction.

That's according to Nazameera Moola from SA Investments at Ninety One.

Mboweni will deliver his budget speech on Wednesday.

"Revenues are running slightly ahead of what we expected," says Moola.

READ: WATCH: Mboweni delivers medium-term budget speech

"And I am not saying this is great news, because COVID is expected to cause a further R300-billion shortfall in the budget deficit from February last year," she says.

According to Moola, R400-billion is expected to be borrowed by the government from 1 April.

"It is good news, but we need to put in into context of what it is, we are still in a bad space," says Moola

Moola says government needs to control expenditure growth this year.

Source
eNCA

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