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What we can expect from the Finance Minister in his 2020 Budget Speech

The 2021 Budget Speech by Tito Mboweni, the finance minister of South Africa will be delivering on his promises to the people of South Africa. The breaking news is that he has promised to reduce taxes across all sectors in order to address the growing problem of unaffordable housing.

What expectations should we have of the 2020 Budget Speech?

The Finance Minister will present his Budget Speech in the beginning of 2021. We cannot expect anything, but the fact that he is presenting his speech in this time tells us that he wants to make it about more than just tax cuts. Expect him to be striving towards a fairer model for taxation, with less exemptions and incentives for capital gains. It will be intresting to hear what the busget speech will be about because of the current pandemic.

What are reasons for optimism in the upcoming Speech?

Budget 2021 is just around the corner and Finance Minister Pranab Mukherjee has already raised the expectations of the market. The finance minister is expected to give greater focus towards infrastructure spending, which should have a positive effect on sectors that are dependent on investments in infrastructure. This shall provide a boost for construction, housing, healthcare, education, banking and financial services.

What are reasons for pessimism in the upcoming Speech?

As this year is closer to its end, it is likely that the Finance Minister will present a budget speech in 2021. The recent trends in public finances and economic growth have turned the government’s attention towards the next five years. Some of the challenges faced by the Finance Minister include: (1) Increasing expenditure and (2) Securing revenue.

How can new realities impact on government’s policies?

The Finance Minister is expected to give away a few more details on government’s policy during the 2021 Budget speech. This speech will be an important moment for the Indian economy as it will provide insights into the direction which the government plans to take.

Some main challenges facing South Africa

The Finance Minister will have to implement some changes in order to address the challenges that South Africa is facing. Some of these include the poor fiscal position, high unemployment rates, and low economic growth rates among others. We must also think about the job losses that happend during the past few months.

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