CAPE TOWN, Oct 28 (AFP): As South Africa's economic growth slows and inflation heats up, Finance Minister Trevor Manuel will present a medium-term budget Tuesday with decidedly less to smile about than six months ago.
While analysts expect Manuel to be more cautious in his revenue predictions, they believe past prudence and a five billion rand (about 760 million dollars) budget surplus announced February has left him with enough room for manoeuvre.
"We are certainly facing slower growth. GDP growth is expected to be well below four per cent next year," said T-Sec economist Mike Schussler.
"This is going to change things. The minister is going to be in a slightly more difficult position."
As a result, Manuel is apt to cut his predictions for 2008/09 revenue income.
"The revenue prediction is likely to be conservative," agreed economist Jac Laubscher of financial services group Sanlam. "But the minister won't need to cut back on spending plans. He has enough fuel in the tank."
Slowdown takes shine off S Africa's mini-budget
FE Team | Published: October 29, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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