Nene to deliver mid-term budget speech
Minister of Finance Nhlanhla Nene is expected to downgrade South Africa's economic growth outlook when he delivers his medium-term budget policy statement in Parliament today.
Nene delivered his maiden budget as Finance Minister a year ago.
Today's presentations will be under conditions that are far more bleak.
The impossible balance that Nene will have to achieve is between convincing rating agencies and investors that his tough talk about cutting spending to pay the country’s deepening debt will be taken seriously and implemented.
On the other, he will have to consider how inequality in South Africa is straining social relations.
While workers strike, mining production falls, students demand free education and while government promises to expand services money is tight.
Corruption, however, has soared.
Nene will not only have to convince investors of his plan, he will have to ensure that cabinet ministers, especially those in charge of big spending departments and energy management, are all firmly behind him.