Eskom will be at the top of the agenda when Finance Minister Tito Mboweni unpacks his 2019 budget speech on Wednesday. The state owned power entity is in a serious financial crisis and could run out of money by April.
President Cyril Ramaphosa in his State of the Nation Address (SONA) announced the unbundling of Eskom into three separate entities.
Mboweni will give more details as to how this will be done.
Team National Treasury working on the budget speech today. February 17, 2019. Cape Town. pic.twitter.com/tsH041XEHt
— Tito Mboweni (@tito_mboweni) February 17, 2019
Analysts and international rating agencies will be watching closely to see how much money government will give Eskom to keep its lights on.
The finance minister is confronted with Eskom’s rising costs and falling revenue.
The minister will have to explain to South Africans where and how he will find the money to save Eskom.
#RSABUDGET2019 On 20 February, watch all major broadcasters and listen to the major radio stations from 14:00 to hear the Minister of Finance @tito_mboweni deliver the Budget in @ParliamentofRSA. Follow National Treasury’s twitter page for more updates on the day. @GovernmentZA pic.twitter.com/UCQi8ab9hv
— National Treasury (@TreasuryRSA) February 13, 2019
Mboweni will also have to crack the whip in ensuring that government spending ceiling is maintained.
Rating agencies have flagged this as another fiscal challenge that government has to confront.
Mboweni will shed more light on what taxes will be increased and what the way forward will be for other state owned enterprises.
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