South Africa’s Finance Minister gives toughest budget

South Africa’s Finance Minister Tito Mboweni has delivered what has been described as the toughest budget speech since the fall of apartheid in 1994.

Faced with record unemployment, a shrinking economy coupled with the devastating effects of the Covid-19 pandemic, Mboweni sought to allay fears about the prospects of Africa’s most industrialized economy.

Mboweni said they owe a lot of money to a lot of people highlighting the country’s escalating debt burden – which is set to rise to 90% of GDP by 2025.

The task of balancing the budget is made even harder by a 15 billion dollars shortfall in tax revenue collection, the biggest on record.

The good news for ordinary South Africans is that there will be no additional taxes this year.

Opposition parties have criticised Mboweni’s speech, stating it provided no clear strategy regarding how to reduce the country’s 32% jobless rate, or how to grow the economy.