Finance Minister Tito Mboweni says there is reason for optimism as the country’s economy is forecast to grow
in the next few years.
Delivering his budget speech on Wednesday, he said government would stabilise electricity supply and support industries to promote faster growth.
Budget 2021 delivered by Minister of Finance Tito Mboweni:
Government also expects its mass vaccination programme to support the reopening of the economy and has allocated R10.3 billion to fund it over the next two years.
“The main budget revenue is projected to be R1.35 trillion or 25.3% as a share of Gross Domestic Product (GDP) in 2021. This rises to R1.52 trillion in the year 2023-2024 of the medium-term expenditure framework,” adds the Minister.
The video below unpacks Minister Mboweni’s budget speech:
3.3% growth expected
Meanwhile, government expects the economy to grow by 3.3% in 2021, from a contraction of 7.2% in 2020, with confidence and investments in the economy at low levels.
Government says it plans to make things better by removing structural constraints that obstruct growth.
The Minister says in the short term, structural reforms to promote economic recovery will focus on speeding up the expansion of electricity generation, creating jobs, rolling out infrastructure and supporting manufacturing and beneficiation.
Risks to growth include new waves of infections and the associated disruptions to economic activity.
Below is the 2021-2022 budget speech: