Ahead of delivering the 2021 National Budget Speech next month, finance minister Tito Mboweni is seeking budget tips from the South African public.
Taking to its social media page, National Treasury asked South Africans to make their voices count by submitting budget tips for the minister.
Every year, Treasury calls on the public to forward comments and suggestions for the national budget, with citizens given a chance to share their views about economic conditions and other issues they would like government to highlight.
It’s also an opportunity to advise government on what it can do to achieve faster and more equitable economic growth, among other issues.
This year’s budget speech comes as SA’s economy is reeling from the effects of the COVID-19 pandemic, resulting in an economic slump, business closures and families losing their livelihoods.
Adding fuel to the fire is the International Monetary Fund’s (IMF’s) trimmed economic prospects for the country. The IMF expects SA’s economic growth to shrink from 3% to 2.8% in 2021, with growth of only 1.4% next year.
In its discussions with Treasury about economic development in the country, the IMF found the COVID-19 pandemic has worsened SA’s growth and fiscal vulnerabilities.
South Africa should reduce large fiscal deficits and debt levels through containment of the wage bill and avoid ill-targeted subsidies and transfers to inefficient state-owned enterprises, and the country should advance its structural reforms that will raise long-term growth, noted the IMF.
In his weekly newsletter last week, president Cyril Ramaphosa pointed out that public finances are under extreme strain because of the cost of the health response to COVID-19, and the social and economic relief measures government put in place to assist businesses and poor households.
The contraction of the economy also meant tax revenue declined significantly, said Ramaphosa.
“There are some parts of the economy that will take longer to recover due to lower global demand generally and restrictions on international travel. That is why we need to be innovative and focused in our plans to rebuild the economy.”
People interested in providing their tips for the national budget can do so by clicking on this link, or submit them via Treasury’s Twitter account @TreasuryRSA, using the hashtag #BudgetTips2021.
The date for the budget speech is yet to be announced.
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