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The Medium Term Budget Speech 2016

Author: Ferdie Schneider, Head of Tax at BDO South Africa  Amidst protests at Parliament, the Minister of Finance, Mr Pravin Gordhan, delivered his Medium Term Budget Policy Statement (MTBPS) on 26 October 2016 at 14:00. The MTBPS again reported to Parliament and the general public on the planned use of taxpayer funds; fiscal and financial measures; and public finance management. SA’s economic growth was forecasted at 0.9% in the February 2016 Budget, but the MTBPS has revised this downward to just 0.5% for 2016. Forecasts have it that economic growth will increase to 1.7% in 2017, which seems to be a very optimistic forecast, but if believed to be found credible could boost investor confidence. This is on the back of a slowdown in global growth in 2016 which affects investment and trade in most economies, especially those of developing countries.