Morning Brief – Thursday, 27 October 2022

Good morning. Here’s what you need to know today:

• Economists view the medium-term budget as mostly positive.
• Government is prepared to take over a significant portion of Eskom’s debt.
• Presidency says it has seen no evidence of a planned terrorist attack in Sandton following a US Embassy warning.

Medium-term budget is positive – perhaps too positive, economists say

Economists mostly agree with finance minister Enoch Godongwana’s summary of the medium-term budget, which he described in one word as “positive.” They have welcomed a retreat in South Africa’s budget deficit, which during the height of the pandemic, was expected to reach 8.6% this year but Godongwana said it looks on track for 4.9% – also lower than the 6% predicted in February’s budget. The improvements are largely thanks to a large corporate tax take this year, which is on track to beat the budgeted amount by R60 billion. (News24)

Silence on Eskom and other SOEs highlights politically difficult MTBPS – and other trade-offs

Godongwana signalled that “trade-offs” in the budget were necessary to help balance which priority needed to be addressed over another. Government is prepared to take on between R126 billion and R266 billion of Eskom’s R400 billion debt while it will offer bailouts to state-owned enterprises Transnet, Denel and Sanral. The Post Office and South African Airways aren’t in such luck while the minister also confirmed the R350 Social Relief of Distress grant would be extended to April 2024. (Daily Maverick)

No evidence of Sandton terrorism threat, says SA government

The US Embassy set off alarm bells on Wednesday after it issued an alert on its website warning US citizens in South Africa that a terror attack in the affluent area of Sandton was imminent over the weekend. Minister in the presidency Mondli Gungubele has refuted the embassy’s claims and told SABC News that he had checked with his security but could not verify the terrorist threat. “This alarm has been going on but up to this point it is not backed up by any evidence,” Gungubele told the broadcaster. (Times LIVE)