Finance Minister Tito Mboweni says South Africa has the urgent task of resolving what he calls the “rot” in the economy and at the same time set the nation up for more stable economic growth.
He brought a South African aloe plant into the chamber and used it to demonstrate the resilience of the economy – but also the bitter realities that face South Africa. Mboweni says the 2019 budget is built on six points.
“First, achieving a higher rate of economic growth, second, increasing tax collection, third reasonable, affordable expenditure, fourth stabilising and reducing the national debt, five reconfiguring state-owned enterprises, six managing the public sector wage bill It will not be easy. There are no quick fixes. But our nation is ready for renewal.”
Government will spend about R1,83 trillion for the financial year 2019/20 and the bulk of the money goes to Social Services.
Mboweni has tabled his maiden budget in Parliament – giving cash strapped Eskom R23 billion a year to undertake its electricity market reforms.
— National Treasury (@TreasuryRSA) February 20, 2019
The biggest slice of the budget cake goes to Education with an allocation of R386,4 billion. Mboweni says the budget remains focused on the poor.
“Fully subsidised and training for the poor is government’s flagship higher education intervention over the medium term government will spend 11.2 billion to ensure that 2.8 million deserving student from poor and working class families obtain their qualifications at universities and TVET colleges.”