Medium-term budget speech: what you need to know

Here are some of the issues he touched on: 

- The South African Economy - 

The Finance Minister says South Africa's debt has exceeded R3 trillion and is expected to rise by a further R1.3 trillion in the next three years.

"Our expenditure continues to exceed our revenue. Our national debt is increasing at an unsustainable pace. The economy is not performing well."

"The economy is now forecast to grow at 0.5 per cent in 2019 compared to the 1.5 per cent expected in February. Growth is projected to slowly rise to 1.7 percent in 2022, supported by household consumption and private-sector investment." 

- Wage Bill -

Mboweni has told Parliament that senior government officials won't be getting a pay rise any time soon. 

He say these measures are a directive from the President, as they try to further arrest government spending and bring down the public servants' wage bill.

"29 000 public servants, plus members of the national executive, members of Parliament, members of provincial executives, and so forth, each earned more than R1 million last year. After adjusting for inflation, this is more than double the number of civil servants earning more than R1 million in 2006/07."

"For the foreseeable future, Cabinet, Premiers and MECs’ salaries will be frozen at current levels. The cost of official cars will be capped at R800 000, VAT inclusive. A new cell phone dispensation will cap the amount claimable from the state. All domestic travel will be on economy class tickets. The minister of finance will make a determination on the appropriate use of subsistence and travel for all arms of the state."

- Eskom - 

Mboweni says they will "wean state-owned companies off the national budget. They must learn to stand on their own feet."  

"Government has announced a comprehensive set of structural reforms for Eskom and the energy sector, which we are supporting with R230 billion over the next 10 years. Very difficult budget adjustments have been made." 

"To meet unanticipated cash needs, we have brought forward R26 billion in 2019/20, R33 billion in 2020/21 and R10 billion in 2021/22. Further delays in operational reforms could mean additional support is required."

"We cannot continue to throw money at Eskom. For the sizeable support required, it cannot be business as usual. Going forward, new cash flow support will no longer be equity, but will be in the form of loans. Once I am convinced that the Eskom Board and Management has made an irrevocable commitment to implement government’s decisions and there is enough progress, we will negotiate the appropriate size of debt relief."

 - SAA - 

Mboweni says the state-owned airline is unlikely to ever generate enough cash flow to sustain operations in its current configuration. 

"Which then begs the question: how long are we going to be on this flight path? Forever? I think not. Operational and governance interventions are required urgently." 

"We have essentially chosen to subsidise the middle class and wealthy flying around the country and other parts of the world, rather than the ordinary workers who sit in old trains from the townships every day, often getting stuck and being late for work. We are also subsidising the wealthy bond holders, who hold government-guaranteed debt but receive higher yields without additional risk." 

-Health Care -  

"The National Health Insurance policy aims to provide healthcare more equitably to South Africans. There are ongoing discussions between the Ministers of Finance and Health, and between our respective departments. Parliament is considering the proposed NHI Bill."