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Finance Minister Enoch Godongwana did the right thing in his Medium-term Budget Policy Statement (MTBPS), cutting debt and saving some of the proceeds of a windfall tax take, says the International Monetary Fund (IMF), but he may have been too optimistic in assuming that he will hit the fiscal targets he has set.
The IMF's Africa team is in SA following the publication of its Regional Economic Outlook for Sub-Saharan Africa earlier in October.
In an interview in Cape Town, IMF resident representative Max Alier said while "the tone of the MTBPS was right" and it was "very positive", that Godongwana had opted for fiscal consolidation and to save a large chunk of the windfall tax, several assumptions "were a bit on the optimistic side, given the global conditions".
