Tito Mboweni delivered the mid-term budget policy statement on the 24th of October and while South Africans didn't expect miracles, Mboweni did announce solid changes. Mboweni said the focus is on rebuilding and that's what he hopes the proposed changes to budget will achieve.
In his first official act as Finance Minister, Tito Mboweni delivered the mid-term budget policy statement for 2018.
He addressed the many economic issues South Africa faces and hopes his proposed changes to the current budget will address them effectively.
For your convenience, here are the 4 biggest changes Mboweni made to the budget:
1. VAT removal
Mboweni announced that VAT will be scrapped from a couple of items. Sanitary pads, tampons and nappies are among these items. White bread flour and cake flour will also no longer have VAT added to their prices. This will kick in from April 2019.
Mboweni added that there are no other planned VAT increases for the foreseeable future, but fuel prices could be expected to continue rising.
2. Grant structure for infrastructure
The Finance Minister announced that R14.7 billion will go towards improving infrastructure at informal settlements. A further R1 billion housing subsidy will aim to help middle and low-income home buyers.
3. The SAA gets a bailout (again)
Mboweni has allocated R5 billion to help the South African Airways out of its current financial troubles.
4. SOEs will be reconfigured
State-owned-enterprises will also be receiving funds, but Mboweni wants them to be reconfigured as soon as possible. SOEs have been looted by corruption and caused a major money drain and Mboweni wants to put an end to it.
Mboweni is positive and hopes that these changes will result in a change in South Africa's economy in the long run.
The Finance Minister also suggested that changes be made to the President's cabinet. He feels that 70 members in the cabinet doesn't make sense at all and it should be cut down to 20, as reported on earlier by Briefly.co.za.
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