Budget 2021 is a difficult balancing act
On 24 February 2021, Finance Minister Tito Mboweni tabled Budget 2021 in Parliament.
It was a difficult balancing act.
Taxpayers are fed up, ratings agencies bring consistent downgrades, and yet fragile political alliances refuse to allow the radical change we need to implement. At a glance, the result is a risk-averse strategy that fails to address root causes of our problems.
Budget 2021 holds the much-needed line on fiscal consolidation in the face of public service wage demands, but continues to avoid addressing South Africa’s fundamental problems.
The size of the deficit is less than feared, but it is still vast and must be filled with increased debt, which South Africa borrows at premium rates and puts our country in more debt.
OUTA's comments on the Budget on 25 February:
OUTA made a submission on 26 February to the Select and Standing Committees on Finance, on the fiscal framework and revenue proposals in Budget 2021.