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'Govt is borrowing huge amounts of money. Will it cut spending on salaries?'

27 October 2020 1:20 PM
Tags:
Government debt
Tito Mboweni
Government spending
mini budget
Public Sector Wage Bill
Zain Johnson
The Midday Report on CapeTalk
Izak Odendaal
Old Mutual Wealth
2020 Medium-Term Budget Policy Statement

To reduce borrowing, you’ll have to cut spending. The key issue remains public sector salaries, says analyst Izak Odendaal.

On Wednesday, Finance Minister Tito Mboweni will deliver the most consequential “mini-budget” speech in democratic South Africa’s history.

FILE: Finance Minister Tito Mboweni. Pictures: EWN.

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Anxiety around the 2020 Medium-Term Budget Policy Statement (MTBPS) is palpable across the lockdown-smashed nation.

Zain Johnson asked Izak Odendaal what he expects from Mboweni and how he may attempt to stabilise South Africa’s spiralling debt and boost economic growth.

Odendaal is an investment analyst at Old Mutual Wealth.

… the interim budget in June… he promised more detail… We’re specifically looking at detail on the spending side of things… Government is borrowing huge amounts of money at the moment…

Izak Odendaal, investment analyst - Old Mutual Wealth

To reduce borrowing, you’ll have to make spending adjustments… The key issue… is salaries paid to public sector workers…

Izak Odendaal, investment analyst - Old Mutual Wealth

We want to see a move to zero-based budgeting… Every year you have to start from scratch in justifying the money you get from Treasury.

Izak Odendaal, investment analyst - Old Mutual Wealth

Listen to the interview in the audio below.




27 October 2020 1:20 PM
Tags:
Government debt
Tito Mboweni
Government spending
mini budget
Public Sector Wage Bill
Zain Johnson
The Midday Report on CapeTalk
Izak Odendaal
Old Mutual Wealth
2020 Medium-Term Budget Policy Statement

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