Tag: public debt

We note the tabling of the delayed 2025 National Budget. As with previous budgets, the steps announced by Finance Minister Enoch Godongwana highlighted the need for higher growth rates in the domestic mining sector and the broader economy.

“Supporting an unemployed person with a public works job far outweighs its cost” according to ex-deputy director-general of National Treasury, Andrew Donaldson. Experts with a deep understanding of economics, our country and its policy history, from Andrew Donaldson to Kate Philip, the lead on the Presidential Employment Stimulus, are calling for an expansion of socially and economically productive public works programmes.

If globalisation was powerful for disinflation, de-globalisation is the reverse. We have reached peak globalisation. The world has reached the limits of economic and political integration. The result is the partial reversal of one of the most important deflationary forces at play in global economies.

Despite perceiving the overall risks to CPI as on the upside, all five members of the Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 3.5%. The repo rate has been on this level since 23 July 2020.

All five members of the Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 3,5%. It has been on this level since 23 July 2020. The MPC viewed the overall risks to the Consumer Price Index (CPI) outlook to be on the upside compared to balanced in the March 2021 statement. This means the MPC’s interest rate outlook is more hawkish.

Minister of Finance Tito Mboweni delivered his Budget Speech 2021 to Parliament on Wednesday, February 24. This document provides an overview of key information relating to the economic outlook, government revenue and expenditure, fiscal balance, and the public debt trajectory.