The importance of this annual speech and what it actually means.
DURBAN – As South Africans wait with bated breath for the much anticipated Medium Term Budget Policy Statement (MTBPS)for 2020, we relay the importance of this annual speech and what it actually means.
The Medium Term Budget Policy Statement which will be delivered by South African Finance Minister Tito Mboweni is a government policy statement which communicates the policy goals of government.
It also provides a macroeconomic context, the foundation for a three year budget forecast and the context in which the annual budget speech in February will be presented.
The MTBPS contains a spending review of national departments and each provincial government for the period of 1 April to 30 September of the current financial year.
MTBPS is significant because:
- it improves the quality of long-term planningpromotes the political technical interfacestrengthens intergovernmental fiscal processgives parliament the opportunity to discuss and shape government’s approach to the budgetallows for a more open and transparent budget process
The MTBPS is drawn up after consultations the relevant National Treasury stakeholders and national departments submit their medium term expenditure framework as well as the medium term strategic framework and the national development plan.
The team behind the MTBPS includes the executive, (the finance minister’s budget commitee, cabinet and extended cabinet), legislatures, departments, financial and fiscal commission (FFC), provincial government, relevant entities and donors.
The Medium Term Budget Policy Statement starts at 14:00pm and can be viewed on DStv Channel 408 or YouTube (Parliamentof RSA).
BUSINESS REPORT ONLINE