South African Finance Minister Trevor Manuel said at the launch of the latest Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday that South Africans have reason to feel exceedingly proud of what they had achieved as the current fiscal position was “a seriously good story”.
The MTBPS highlighted a total revenue estimate to R466,4-billion for the 2006-07 financial year from R446,4-billion previously as buoyant economic conditions continued to find expression in the revenue trend and this fed through to an announcement of a surplus of 0,5% of GDP expected in 2007/08.
Many commentators had said that the revenue over-runs and slow expenditure uptake were detrimental to a growing economy and that a surplus was not ideal.
A deficit of 0,2% in 2008/09 and of 0,4% in 2009/10, however, was expected after the surplus year according to the MTBPS data.
“The revenue over-runs are not insignificant. However the choices we now have as to 2010 soccer, criminal justice, opportunities for educators and government capacity improvements are durable. And we can make them because of the decisions of the past decade,” said Manual.
“This is a seriously good story,” he concluded. – I-Net Bridge