Elephants in the room that aren't being addressed
On 26 October, Minister of Finance Enoch Godongwana tabled the Medium-Term Budget Policy Statement (MTBPS) in the Cape Town City Hall. There have been mixed reactions to the statement, and while this minibudget suggests that South Africa's finances are in a better position than was estimated in February, Godongwana's MTBPS yet again highlights the most pressing challenges facing economic growth in the country. And, once more, there are very few solutions forthcoming, if the MTBPS is anything to go by. Let's start with the good news. The budget deficit, which indicates by how much expenses exceed revenue, is expected to narrow to 3,2% of GDP in 2025/26 from 4,9% in 2022/23. A primary budget surplus of 0,7% of GDP in 2023/24 is predicted should tax revenue collection continue on its projected course.…