Slow but steady economic recovery forecast in #Budget2019
Finance Minister, Tito Mboweni says we can expect slower GDP growth.
Tabling his maiden budget in Parliament, he said many of the risks we were facing have materialised.
"We now expect a slower but still steady recovery after the 2018 technical recession. It is expected that real GDP growth in 2019 will rise to 1.5 per cent, and then strengthen moderately to 2.1 per cent in 2021," he said.
On state-owned entities - the minister said the days of government guarantees being handed without proper planning will be a thing of the past.
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"We must tighten the guarantee rules going forward. If a state-owned enterprise applies for a government guarantee for operational purposes, it will be required to appoint a CRO as I mentioned before. In the private sector, if the executive and the board - the banks will appoint - the eyes and ears of the shareholder."
Mboweni has also announced some tax increases.
"Fuel levies will increase by 29 cents per litre for petrol and 30 cents per litre for diesel. We urge the Department of Transport to quickly resubmit the Road Accident Benefit Scheme Bill for Parliament’s urgent consideration. It will help stabilise fuel prices," he said.
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If you are a drinker or smoker - you'll also be paying more.
