one voice for travel and tourism


CALL FOR COMMENT: Draft BUSA submission on the 2017 Medium-Term Budget Policy Statement 



Draft BUSA submission on the 2017 Medium-Term Budget Policy Statement 

Ahead of the Medium-Term Budget Policy Statement (MTBPS) taking place in Parliament on Wednesday 25 October, BUSA is engaging National Treasury through the Nedlac Public Finance & Monetary Policy Chamber. TBCSA members are therefore requested to provide inputs on the attached draft submission, which will inform the final BUSA position to National Treasury. Inputs can be emailed to by no later than midday on Monday 09 October 2017.

In summary: A BUSA perspective on the 2017 MTBPS
The 2017 MTBPS takes place in the context of weakening economic growth, with growth for 2017 projected to be 0.5% by the South African Reserve Bank. This is in a context of declining business confidence, stubbornly high and unsustainable levels of unemployment and inequality, an improving yet uncertain global economic environment – and the possibility of further sovereign ratings downgrades, with their associated consequences, during the course of 2017. To this end, the following objectives should guide the 2017 MTBPS:

  • A firm commitment to macroeconomic, fiscal and institutional stability.
  • Improved and consistent communication on the part of government and its agencies.
  • A stable, certain regulatory environment.
  • Reliable and affordable infrastructure.
  • Functioning and competent, fit for purpose SoEs.
  • Improved skills and education to drive competitiveness.
  • Clear and tangible progress on the implementation of government initiatives to address economic growth and confidence, such as the Inclusive Growth Action Plan.

In the immediate future, with the budget deficit likely to exceed the 3.4% of GDP for Financial Year 2016/2017 announced in MTBPS 2016, two broad avenues to reach fiscal sustainability are available, namely reductions in expenditure and increases in revenue. The BUSA draft submission gives broad proposals for Treasury to consider on tax policy and expenditure.

Click Here to download a zipped folder and view the following:

  • The BUSA Draft Submission to National Treasury on the 2017 (MTBPS) 
  • The TBCSA Member Comments Template (to be completed and sent to by no later than midday on Monday 09 October 2017).

Comments are closed.