- Freshly appointed Finance Minister Tito Mboweni delivered the mid-term budget on Wednesday afternoon
- Mboweni says having 70 members in the cabinet doesn't make sense at all
- He suggested that the number be cut down to 20 cabinet members
Tito Mboweni has been appointed as Finance Minister just over 2 weeks ago and faced his first test: the mid-term budget.
Mboweni will have to impress South Africans after the difficult economic times they've suffered through.
His first suggestion is to cut the size of the president's cabinet. According to him, 20 members is a much better idea than the current 70.
TimesLIVE reports that with the cabinet at its current size, wages are at about R500 billion a year.
Mboweni also said that wages need to be re-evaluated as well. He added that wages stand in the way of services and investment in education and health.
Mboweni also said that despite the economy being weak, government's spending would continue to rise in the next 3 years.
According to the budget, R5.9 billion will be spent, of which R3 billion will go to health, water and electricity provision, education and social grants.
This will result in the government borrowing more money to fund some of its priorities, pushing debt to R221 billion by 2021.
Here's a video of the budget speech as it happened:
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