Finance Minister, Tito Mboweni has delivered his maiden budget speech for 2019 this afternoon, and he did it with a few jokes and japes thrown in for good measure, too. Mboweni’s optimistic tone looked towards fixing Eskom, restoring the credibility of SARS and a 12-figure boost for free higher education. The Momentum Investment team has compiled a flashpoint of the budget, below are some highlights.

• Wider-than-expected budget deficit surprises negatively, 0.2% wider over the medium-term expenditure framework between FY19/20 and FY21/22 (MTEF) on average. 
• Expansionary budget, (real) expenditure growth expected to outstrip revenue growth in the first fiscal year, but reverses in the outer years of the MTEF.
• Relative to October 2018 medium-term budget, expenditure was revised higher by R14.1 billion and revenue was adjusted R10.3 billion lower between FY19/20 and FY20/21
• Focus remains on realising a renewal in growth through the implementation of reforms.

The full summary is available for download here. We will also circulate an in-depth report tomorrow during the course of the morning. A full tax guide is available to download here, and hard copies will be available from your Momentum business consultant.

Etienne Gouws
CEO: Momentum Intermediary Solutions
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