Medium term budget to clarify proposed stimulus package

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Finance Minister Tito Mboweni‘s Medium Term Budget Policy Statement (MTBPS) is expected to give clarity on government’s intention to reprioritise R50-billion of funds to stimulate the economy and create jobs.

President Cyril Ramaphosa announced the stimulus package in September.

Economists say re-prioritising funds is the better option rather than increasing taxes.

Mboweni will deliver his maiden medium term budget on Wednesday.

Economist Mike Schussler says: “I think by the time we reach the budget in February, we would see even more reprioritisation. We have a strong finance minister now and there is a better chance that we are going to see more spending on infrastructure than on wages. But it might not all happen in one go.”

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