Debtfree Magazine Issue 11 of 2021

CONSERVATIVE MINI
BUDGET IS WELL RECEIVED
This month, Finance Minister Enoch Godongwana tabled
his first Medium Term Budget Policy Statement (MTBPS). It
was well received and varied very little from the path set by
his predecessor Tito Mboweni.
The MTBPS reviews how the Government’s budget plans
are going for the year and shows if any big changes have to
be made.
Though some income figures have shifted (an extra R120
Billion coming in due to better than expected tax earnings)
no big changes to spending have been made. Rather a more
conservative approach was adopted which will focus on
servicing debts.
In a minor change, an extra R3.9 billion was set aside for
Sasria to help cover damages and claims relating to the
rioting and looting earlier this year in July. An additional R3
billion was also set aside to cover possible additional vaccine
purchases in the next few months.
The markets reacted quite well to the conservative mini
budget.