Godongwana might announce relief measures for SOEs during MTBPS: Economists

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Some economists believe Minister of Finance Enoch Godongwana might announce extra relief measures for struggling State-Owned Enterprises (SOEs) at the Medium-Term Budget Policy Statement (MTBPS) tomorrow.

Eskom, which remains the big elephant in the room and has already received R23 billion, remains in financial distress.

It is currently implementing rolling blackouts after many of its aging power plants went down.

Eskom says power generation has improved, the system however remains at risk:

Other SOEs like Denel and the Land Bank continue to weigh heavily on government coffers.

In his February budget speech, former Finance Minister Tito Mboweni indicated the government had run out of money to bail out SOEs.

He indicated that state-owned companies needed to fund themselves. However, economists believe the government might make a few adjustments for some struggling SOEs during the MTBPS.

State-owned arms manufacturer Denel is already struggling to pay salaries.

The Road Accident Fund is also in a state of disarray and may face total collapse if it does not receive extra funding, while Eskom remains under deep financial problems, barely keeping the lights on.

More priorities are expected to be covered in the Medium-Term Budget: