MTBPS: Treasury may slightly lower growth forecast, economist predicts
An economist believes the Treasury could slightly lower the country's 2025 growth forecast but keep the overall economic outlook steady.
Finance Minister Enoch Godongwana will deliver the Medium-Term Budget Policy Statement in Parliament on Wednesday afternoon.
Economist Patrick Buthelezi from Sanlam Investments says the minister might exercise caution this time around, following the outcry over a VAT hike announcement in March - a decision that was later reversed.
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Buthelezi says that despite challenges such as the US tariffs on South African exports, the GNU has remained stable in the second half of the year.
He says the country's removal from the anti-money laundering watchdog, the Financial Action Task Force, grey list would be helpful in implementing key economic reforms.
" The monthly budget data indicates that revenue is currently growing faster than projected. Also, the terms of trade remain high, supported by high commodity export prices. Overall, we expect the MTBPS to build on the first GNU (Government of National Unity) new budget."
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Meanwhile, the Board of Healthcare Funders has called on Godongwana to provide clarity on the future of medical tax credits.
" Removing this credit too soon could make medical scheme membership unaffordable, forcing many out of private cover and into an already stretched public system," says the organisation's Katlego Mothudi.
"We are thus urging the minister to confirm that these credits will remain until a sustainable, transparent plan for universal health coverage is in place."
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