Streaming issues? Report here
Kieno Kammies 2019 1500 BW Kieno Kammies 2019 1500 BW
Today with Kieno Kammies
09:00 - 12:00
volume_up
volume_mute

Up Next: The Midday Report with Lester Kiewit
See full line-up
Today with Kieno Kammies
09:00 - 12:00
Home
arrow_forward
Business
fiber_manual_record
Opinion
fiber_manual_record
Politics

'Mboweni must remember revenue windfall means SA just in slightly smaller hole'

18 February 2021 7:40 PM
Tags:
National Treasury
Tito Mboweni
The Money Show
Bruce Whitfield
Government expenditure
SOEs
state-owned enterprises
Nazmeera Moola
government wage bill
Ninety One
COVID-19
economic recovery
2021 Budget Speech
2021 Budget

Tips for Tito: The Money Show interviews Ninety One's Nazmeera Moola ahead of the finance minister's Budget speech next week.

Finance Minister Tito Mboweni will present his annual Budget Speech next Wednesday, 24 February.

The key risks to the fiscus of a year ago, remain challenges the government is yet to overcome says Nazmeera Moola (Head of SA Investments at Ninety One).

These are the government wage bill and capital requirements of badly-run, inefficient state-owned enterprises (SOEs).

The good news, says Moola, is an unexpected revenue over-run on the back of South Africa's better-than-expected economic recovery.

RELATED: Government does NOT need to increase taxes to fund vaccines - economist

Forecasters estimate this at between R35 billion and R150 billion, based on data from December.

However, government must guard against the temptation to view the revenue over-run as a windfall that can be spent to satisfy questionable demands, Moola cautions.

It is imperative that it holds the line on expenditure in the 2021 Budget and through the upcoming wage negotiations.

Nazmeera Moola, Head of SA Investments - Ninety One

Ray White interviews Moola on The Money Show.

We need to bear in mind that after Covid last year, the government came out and said they expected revenue to be down R300 billion compared to what they'd forecast in the February 2020 budget.

Nazmeera Moola, Head of SA Investments - Ninety One

What we're saying now is that revenues will be around R100 billion better than expected. That still leaves us down R200 billion from last year February.

Nazmeera Moola, Head of SA Investments - Ninety One

How does government play catch-up then?

The economy's already proven to be more robust than many expected, Moola notes.

The fact that commodity prices globally are doing well we've seen showing up in the mining revenues and volumes as well.

Nazmeera Moola, Head of SA Investments - Ninety One

The question is: How do we look forward and implement the structural reforms we've been talking about for years!

Nazmeera Moola, Head of SA Investments - Ninety One

Of course struggling SOEs continue to be a drain on the fiscus.

Government has to hold the line on expenditure she emphasizes.

Can government hold the line on transfers to the SOEs, but also the public sector wage increase?

Nazmeera Moola, Head of SA Investments - Ninety One

We need to use all this better-than-expected revenue to reduce debt levels, and that ensures long-term sustainability in South Africa.

Nazmeera Moola, Head of SA Investments - Ninety One

What would be helpful... is if the Treasury, after the Budget, said we're going to raise less debt every week. Currently, the government's issuing around R11.5 billion a week of debt!

Nazmeera Moola, Head of SA Investments - Ninety One

If we could take the R9 billion issued [before options etc.] down by R2 billion a week, that would prove government's commitment to control expenditure and it would be enormously positive to the bond market.

Nazmeera Moola, Head of SA Investments - Ninety One

Listen to Moola's analysis below:




18 February 2021 7:40 PM
Tags:
National Treasury
Tito Mboweni
The Money Show
Bruce Whitfield
Government expenditure
SOEs
state-owned enterprises
Nazmeera Moola
government wage bill
Ninety One
COVID-19
economic recovery
2021 Budget Speech
2021 Budget

More from Business

Sars plans to tax retirement funds if you leave SA, target offshore assets

24 February 2021 8:42 PM

The proposal to tax retirement fund members when no longer tax-resident in SA is not unreasonable, says Prof. Osman Mollagee.

Share this:
Read More arrow_forward

Med scheme covers chemo treatment but not weekly Covid test required by hospital

24 February 2021 7:39 PM

Consumer ninja Wendy Knowler follows up on the case of a patient who'd been paying his membership dues for more than 40 years.

Share this:
Read More arrow_forward

No tax increases: A 'good news' Budget but SA not out of the woods

24 February 2021 7:17 PM

'We owe a lot of people a lot of money' says Tito Mboweni. Wide-ranging reaction to Budget 2021 on The Money Show.

Share this:
Read More arrow_forward

Facebook and Australia, what it means for the rest of us

24 February 2021 7:15 PM

Will the deal with Australia help publishers around the world?

Share this:
Read More arrow_forward

Uber class action suit in SA: 'Drivers deserve employee rights', says law firm

24 February 2021 11:06 AM

Uber South Africa is facing a class-action lawsuit over the employment rights of drivers.

Share this:
Read More arrow_forward

'Kenya Airways said SAA is our role model! We want lots of government money!'

23 February 2021 9:00 PM

Kenya wants to nationalise the minority-privatised airline, providing a massive bailout. Bruce Whitfield interviews Dianna Games.

Share this:
Read More arrow_forward

Does an emotive Sars advert make you feel better about paying tax?

23 February 2021 8:08 PM

It's Budget day tomorrow and branding expert Sizakele Marutlulle chooses a topical campaign as her advertising hero of the week.

Share this:
Read More arrow_forward

Kumba Iron Ore reports record earnings: 'We're confident in terms of the future'

23 February 2021 7:18 PM

It's thanks to global demand and a quality product - The Money Show’s Bruce Whitfield interviews Kumba CEO Themba Mkhwanazi.

Share this:
Read More arrow_forward

Foreign investment boost of R1.6 billion for digital-only TymeBank

23 February 2021 6:38 PM

The opportunity is a game-changer for the fledgling SA bank. Bruce Whitfield interviews TymeBank CEO Tauriq Keraan.

Share this:
Read More arrow_forward

Pineapple leaf nappies and sanitary wear wins this innovative woman an award

23 February 2021 2:40 PM

Inners of Leafline products are made from a natural pineapple Leaf fibre called Pina Fibre making them environmentally friendly.

Share this:
Read More arrow_forward

More from Opinion

Does an emotive Sars advert make you feel better about paying tax?

23 February 2021 8:08 PM

It's Budget day tomorrow and branding expert Sizakele Marutlulle chooses a topical campaign as her advertising hero of the week.

Share this:
Read More arrow_forward

A South African fraudster fleeced US Big Tech out of R620 million ($42 million)

22 February 2021 8:11 PM

Stephen Timm on his new book, "At Any Cost: The South African Fraudster Who Took the Tech World for More Than $40 million".

Share this:
Read More arrow_forward

We’re producing in the hopes we’ll see an uptick - Jack Black founder

22 February 2021 7:00 PM

The Money Show’s Bruce Whitfield asks Jack Black founder Ross McCulloch if he has any tips for Tito.

Share this:
Read More arrow_forward

Banks unwittingly employ criminals in rush to meet BEE targets - David Klatzow

19 February 2021 1:31 PM

"In the rush to employ people who meet racial requirements, you’re dropping your standards," says investigator Dr David Klatzow.

Share this:
Read More arrow_forward

Lawlessness in Cape Town: 'Gangs have infiltrated crime intelligence'

19 February 2021 10:56 AM

"Speak about Donkie Booysen; the whole community – apart from police – knows," says Willem Els (Institute of Security Studies).

Share this:
Read More arrow_forward

'The Aussies are arrogant; it’s our turn! Host Lions in S Africa, or postpone'

18 February 2021 2:00 PM

Australia wants to host South Africa and the British Lions. "We must put pressure on them to postpone," pleads Wynand Claassen.

Share this:
Read More arrow_forward

Bheki Cele is having tea with Jacob Zuma at Nkandla

18 February 2021 12:26 PM

Lester Kiewit interviews EWN’s Nkosikhona Duma and political analyst Ralph Mathekga.

Share this:
Read More arrow_forward

We don’t understand the gravity of the profession – accounting student

18 February 2021 11:05 AM

"Medical students understand they have someone’s life in their hands," says a young accounting student in a stirring call.

Share this:
Read More arrow_forward

Should South Africa risk a trade-war with US by taxing Google, Facebook, etc?

17 February 2021 1:54 PM

"The French tried, and immediately the US retaliated with tariffs on their wine," warns Wally Horak. "You must satisfy the US."

Share this:
Read More arrow_forward

Eskom hikes by 15% on 1 April: 'We’re sucked dry. Time for an energy revolution'

17 February 2021 11:53 AM

"De Ruyter says he’s looking forward to doubling the tariff increase," says energy expert Ted Blom. "It's time to take Govt on!"

Share this:
Read More arrow_forward

More from Politics

No tax increases: A 'good news' Budget but SA not out of the woods

24 February 2021 7:17 PM

'We owe a lot of people a lot of money' says Tito Mboweni. Wide-ranging reaction to Budget 2021 on The Money Show.

Share this:
Read More arrow_forward

[WATCH LIVE] Budget 2021: Mboweni dives into state of South Africa's economy

24 February 2021 1:03 PM

All eyes were on South African Finance Minister Tito Mboweni as he delivers his 2021 Budget Speech on Wednesday at 2pm.

Share this:
Read More arrow_forward

'Matric results are a superficial measurement of education'

24 February 2021 12:10 PM

Refilwe Moloto chats to Education strategy consultant Raees Khan and education law specialist Dr Jaco Deacon about matric results.

Share this:
Read More arrow_forward

Twitter has strong feelings about renaming PE to Gqeberha (and pronouncing it!)

24 February 2021 10:54 AM

Gqeberha is the isiXhosa name for Walmer Township, one of the first and oldest Port Elizabeth townships.

Share this:
Read More arrow_forward

'School Life Orientation plays a key role in pupils decision-making and success'

24 February 2021 8:48 AM

Western Cape Education Department Senior Curriculum Planner: Life Orientation/Life Skills Ismail Teladia talks to Refilwe Moloto.

Share this:
Read More arrow_forward

Unemployment rises to 32.5%, 7.2 million South Africans without jobs - StatsSA

23 February 2021 1:46 PM

Statistician-General Risenga Maluleke says easing lockdown regs will allow people to move from non-economically active category.

Share this:
Read More arrow_forward

[EXPLAINER] Minister Creecy on why W Cape small-scale fishing rights scrapped

23 February 2021 12:19 PM

The Environment, Forestry and Fisheries Minister is heading to the High Court to have the current fishing rights scrapped,

Share this:
Read More arrow_forward

We were holding our breath, but results better than anticipated - Umalusi

23 February 2021 9:48 AM

Umalusi head Prof Volmink says results were not expected to go up this year, and the results are credible.

Share this:
Read More arrow_forward

'It is a crisis' - 6 days with no water in Makhanda

22 February 2021 3:11 PM

Gift of the Givers has been trying to assist. Founder and chair, Imtiaz Sooliman says it is a crisis that has entered its sixth day.

Share this:
Read More arrow_forward

Only 52% of South Africans willing to get Covid jab - survey

22 February 2021 1:02 PM

Andrea Rademeyer CEO & Founder of Ask Afrika discusses the results of the latest survey.

Share this:
Read More arrow_forward