Finance Minister Tito Mboweni is expected to unveil a major shake-up in spending and revenue forecasts for the recession-hit economy when he tables a supplementary budget pencilled in for June 24.
“We have to adapt to the new situation. A new situation in my view ... requires that we think seriously about going to zero-based budgeting,” Mboweni said during a debate on the 2020 budget appropriation bill, which was passed.
Under zero-based budgeting, all expenses must be justified for each new period. Currently, the National Treasury provides budget forecasts for up to three years ahead.
Mboweni said the new approach would allow the government to refocus attention on growth-enhancing initiatives and that it could “no longer take for granted that the baseline that was there last year will always be the case”.
Africa’s most industrialised economy was in bad shape before the COVID-19 pandemic struck.
A strict nationwide lockdown from late March severely curtailed production across key sectors like mining and retail, with the central bank predicting a gross domestic product contraction of 7% this year.
Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.
Smarter Decisions with Smart News
Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.