Supplementary Budget 2020
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Gordhan to play it safe in mini budget

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Finance Minister Pravin Gordhan. (Photo: GCIS)
Finance Minister Pravin Gordhan. (Photo: GCIS)

Cape Town - Finance Minister Pravin Gordhan’s presentation to Parliament of the medium-term budget policy statement – known as the mini budget – on Wednesday is likely to be more notable for its lack of action on key constraints facing the economy than the bold reforms required to avert possible downgrades by the rating agencies.

With the threat of arrest and fraud charges hanging over him, Gordhan may be hesitant to deliver the structural reforms required to reignite South Africa’s growth, or to tackle the growing debt burden of state-owned enterprises. This is according to economists and analysts interviewed by City Press this week.

Instead, in seeking to convince the rating agencies that he remains steadfast on prudent fiscal management, the minister is likely to present a framework big on fiscal consolidation and spending reductions.

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