1 / 10

Medium Term Budget Policy Kevin Lings

Medium Term Budget Policy Kevin Lings. October 2008. SA GDP growth (government estimate). % (MTBPS October 2008). Fixed Investment Growth (Govt estimate). %. Current account (Government estimate). % of GDP. Inflation (CPIX and CPI from 2009) – Government estimate. %.

liana
Download Presentation

Medium Term Budget Policy Kevin Lings

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Medium Term Budget Policy Kevin Lings October 2008

  2. SA GDP growth (government estimate) % (MTBPS October 2008)

  3. Fixed Investment Growth (Govt estimate) %

  4. Current account (Government estimate) % of GDP

  5. Inflation (CPIX and CPI from 2009) – Government estimate %

  6. MTBPS 2008/09 – October 2008 2007/2008 2008/2009 Initial Budget Revised Expected Rbn Rbn Rbn REVENUE Tax revenue Other receipts SACU EXPENDITURE Interest Other current Contingency DEFICIT/SURPLUS 544.6 556.6 11.1 -23.1 533.9 52.9 478.0 3.0 10.7 559.8 572.9 11.6 -24.7 541.5 52.9 488.6 0.0 18.4 626.5 642.3 11.3 -27.1 635.5 53.9 581.5 0.0 -9.0

  7. Financing the National Budget – MTBPS October 2008 2008/09 2007/2008 Budget Outcome Budget National deficit/surplus Extraordinary receipts Extraordinary transfers Net borrowing requirement 10.73 1.25 0.40 11.58 18.30 1.80 -0.80 19.30 -8.90 7.20 -4.90 -6.60

  8. Government debt as % of GDP % Domestic debt Foreign debt

  9. The most pressing priorities that Cabinet has approved • Improving the quality of education and skills development. • Improving the provision of healthcare. • Investing in the criminal justice sector to reduce the levels of crime and to enhance citizen safety. • Expanding investment in the built environment. • Decreasing rural poverty.

  10. Inflation target unchanged • Mortgage interest rates as a measure of housing costs in headline CPI will be replaced with a measure of owner’s equivalent rent in 2009. • Replacement of mortgage interest rates with owner’s equivalent rent is in line with international best practice. • Headline CPI (CPI for all urban areas) will replace CPIX inflation for metropolitan and other urban areas as the official targeted measure of inflation when the changes are implemented in February next year. • The Minister of Finance and the Governor of the Reserve Bank have agreed that the target band for headline CPI will remain unchanged at 3-6 per cent. • It is expected that the reweighted and rebased CPI will indicate a somewhat lower rate of inflation in 2008 than the present index, partly due to lower expenditure weights for food and petrol.

More Related