MTBPS shows fiscal prudence despite many obstacles

MTBPS shows fiscal prudence despite many obstacles

Minister of Finance Pravin Gordhan delivered the Medium Term Budget Policy Statement (MTBPS) 2016 to Parliament on Wednesday, October 26. The MTBPS is a government report providing information on the country’s economic context, fiscal objectives, and spending priorities over a three-year period. Given South Africa’s current economic and political context, this year’s MTBPS was one of the most anticipated since the annual statement was launched almost 20 years ago.

1000

Also on KPMG.com

construction-workers

Executive summary

Minister of Finance Pravin Gordhan delivered the Medium Term Budget Policy Statement (MTBPS) 2016 to Parliament on Wednesday, October 26. The MTBPS is a government report providing information on the country’s economic context, fiscal objectives, and spending priorities over a three-year period. Given South Africa’s current economic and political context, this year’s MTBPS was one of the most anticipated since the annual statement was launched almost 20 years ago.

A weak economy in need of investment

The National Treasury now expects real GDP growth of only 0.5% this year and a below-trend 1.3% in 2017 due to the impact of an uncertain global economy and low (local and foreign) investor confidence. Echoing recent comments from the South African Reserve Bank (SARB), the minister indicated that this low level of confidence stems from elevated political risk and concerns about the ability of public institutions to make good decisions.

Download KPMG's overview of the MTBPS

To read KPMG's overview of the MTBPS, download the document MTBPS shows fiscal prudence despite many obstacles >>

The South African economy ahead of the MTBPS

The South African economy ahead of the MTBPS

Low economic growth pressures Finance Minister Pravin Gordhan's highly anticipated Medium Term Budget Policy Statement.

Connect with us

 

Request for proposal

 

Submit

KPMG’s new-look website

KPMG has launched a state of the art digital platform that enhances your experience and provides improved access to our content and our people, whatever device you are on.

 
Read more