Carin Smith
2020-02-26 13:02
The rand was falling ahead of Finance Minister Tito Mboweni’s crucial Budget 2020 announcement to reach its weakest level against the US dollar since early October.
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10 things to look out for in the Budget 2020 address:
– Details on the creation of a new state bank;
– Details on the sovereign wealth fund proposed by President Cyril Ramaphosa in his State of the Nation Address;
– What will be done about the public sector wage bill, which is at 35% of public spending;
– How much has the tax revenue gap has widened?
– Any update on state funding for National Health Insurance (NHI)?
– Any (extra) funding for embattled South African Airways?
– Mboweni may provide an update on the steps the state will take to ease Eskom’s debt burden;
– Mboweni will likely provide an update on the SA’s debt position as debt servicing costs are the fastest-growing part of the budget;
– Mboweni may give a rather gloomy summation of the health of SA’s economy;
– Will Mboweni caution about a possible downgrade by ratings agency Moody’s?
