Government’s recently presented 2018 Medium Term Budget Policy Statement provides clear links between the medium-term expenditure statement and President Cyril Ramaphosa’s growth plan, including:
- Reprioritisation of expenditure
- Support for job creation
- Establishment of an infrastructure fund
- Addressing pressing problems in education and health
- Promoting investment in municipal infrastructure.
However, revenue is the thorn in Treasury’s side and with government debt on the rise, the risk of a ratings downgrade is back. Click here to read commentary on the 2018 ‘mini budget’ by Arthur Kamp, Investment Economist at Sanlam Investments.
Click here to listen to Arthur’s podcast, in which he explains why the mini budget has raised the risk of a sovereign debt rating downgrade.