Finance Minister Tito Mboweni tabled the 2021 budget in Parliament on Wednesday. The news was never going to be good, but a few positive announcements raised eyebrows. 

The budget deficit, although the highest on record, was slightly lower than expected. Payers of personal income tax received (unexpected) relief, and the corporate tax rate will drop to 27% from next year. This will help consumers and businesses in difficult times and hopefully stimulate the economy.
 

On the downside, South Africa’s fiscal position has deteriorated significantly. The only way out of this mess is to get the economy growing, and it will take hard and unpopular decisions to change the growth trajectory. Unfortunately, Mboweni did not announce any significant government policy changes and merely echoed previous promises of imminent restructuring. The main disappointment, for me at least, was a lack of action.