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'Mboweni worries about rising expenses. Ramaphosa worries about trade unions'

14 October 2020 3:38 PM
Tags:
Cyril Ramaphosa
Wits
Tito Mboweni
Trade unions
Lumkile Mondi
mini-budget
School of Economics
Koketso Sachane
economic reconstruction
South African Economic Reconstruction and Recovery Plan
2020 medium term budget policy statement

"The President is trying to satisfy many constituencies. In the process, he undermines what should be done," says Lumkile Mondi.

Finance Minister Tito Mboweni wants to postpone his tabling of the 2020 Medium Term Budget Policy Statement by a week.

He was scheduled to deliver his “mini-budget” speech on 21 October but has requested 28 October instead.

President Cyril Ramaphosa and Finance Minister Tito Mboweni. Picture: EWN.

Mboweni cites the complexities around recent decisions by Cabinet in respect of the 2020/21 adjusted estimates.

He’s also still looking at the implications of government's economic reconstruction and recovery plan on the budget process.


RELATED: Economic recovery plan – who needs action when you’ve got words?


Parliament is considering his request.

Koketso Sachane asked Lumkile Mondi (a senior lecturer at the School of Economics at Wits) if we should be worried.

There’s a war of position. The President – together with his advisory council – are at pains about the path that Treasury wants to pursue…

Lumkile Mondi, senior lecturer - School of Economics at Wits

Treasury was ready to present, assuming that it had buy-in… However, the advisory council document is contrary to Treasury’s stance, meaning the Minister has to consult more…

Lumkile Mondi, senior lecturer - School of Economics at Wits

The President is trying to satisfy many constituencies. In the process, he undermines what should be done… Treasury is worried about escalating expenditure… Whereas the president is worried about trade unions… who backed him throughout his ascendency…

Lumkile Mondi, senior lecturer - School of Economics at Wits

Listen to the interview in the audio below.




14 October 2020 3:38 PM
Tags:
Cyril Ramaphosa
Wits
Tito Mboweni
Trade unions
Lumkile Mondi
mini-budget
School of Economics
Koketso Sachane
economic reconstruction
South African Economic Reconstruction and Recovery Plan
2020 medium term budget policy statement

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