OPINION: MTBPS should confirm fiscal progress, but infrastructure delivery remains the weak link

By Busi Mavuso

The medium-term budget policy statement this week is another opportunity for government to signal real progress in improving the management of the country’s finances.

It can cement the positive sentiment that was helped by the removal of South Africa from the FATF grey list and show that we are worthy of a credit-rating upgrade.

The remarkable story is that despite our extremely weak economic growth levels, government has managed to keep tight control of both expenditure and revenue.

Indeed, many economists are expecting better numbers than were tabled when the Budget was finally passed earlier in the year, after the debate over a potential VAT increase was resolved.

Without extra VAT, Treasury has relied on increased collections by SARS and the MTBPS will reveal how well that has gone.

It has also been keeping tight control of spending through its expenditure reviews, going through government departments and assessing