Finance Minister Melusi Gigaba is due to deliver an introductory budget speech next week Wednesday on the 25th of October.
Gigaba will be tabling the Meduim-Term budget Budget Policy Statement (MTBPS) in the National Assembly.
The South African Reserve Bank (SARB) told the media last week that the budget deficit could swell to 4.5% of the gross domestic products (GDP) in the current financial year. This is compared with the 3.1% shortfall the Treasury forecasted in February. The SARB feels that the shortfall in the tax revenue could amount to R50 billion, which is bad for the South African economy.
Last week the Minister of Finance did confirm that the revenue targets are obviously not going to be met.
He also went on to say “National Treasury has a lot of work to do, to maintain the nation’s budget and spending framework, he said in Washington, where he was attending the annual meetings of the IMF And World Bank.
South Africans are advised to prepare themselves for paying more tax, more details will be announced next year February during the National Budget Speech.
When the Minister delivers his MTBPS on the 25th of October, the plans and rescue actions will not be the main interest.
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