Pretoria - Finance Minister Pravin Gordhan will today table the Medium Term Budget Policy Statement (MTBPS) against the background of an uncertain global economic outlook.
Nedbank economists said the mini-budget - which will be tabled before Parliament at 2pm - should contain some detail on new industrial policy initiatives.
The MTBPS is an opportunity for the minister to update the revenue, spending and borrowing projections and predictions for the current fiscal year. It further reflects the collective understanding of Cabinet on the economic and budgetary challenges ahead.
The mini budget also enables the public, legislators, business and civil society to consider government's budget plans some months ahead of the Budget itself which is tabled in February annually.
"No changes to exchange controls and inflation targeting are expected. Revenue and expenditure figures for the first five months of the fiscal year [April to August] as well as the weaker economic outlook suggest that the minister's room for manoeuvre is very limited," said Nedbank ahead of today's MTBPS. .
Chief Executive Officer of the South African Chamber of Commerce (SACCI), Neren Rau, said the chamber would be seeking clarity on clear measures to address regulatory bottlenecks and red tape for business.
It will also be looking at tangible incentives for job creation, especially for increasing youth employment.
"We expect enterprise support, especially for SMEs and support for the business environment, to be a key theme of the Medium Term Policy Statement 2011," said Rau.
Business also expects details on the funding and implementation of the New Growth Path, which aims to create five million jobs by 2020.
Standard Bank said National Treasury was likely to revise downwards its Gross Domestic Product (GDP) growth due to the worsening outlook for global growth.
"Standard Bank now anticipates growth of just 3.3% this year, down on an initial estimate of 3.8% in January. Gordhan is also expected to revise forecasts for the budget deficit and domestic inflation."
On Thursday, Business Unity South Africa (BUSA) said the mini-budget must reinforce what the country can do to cushion the negative impact of developments in the world economy.
How the National Health Insurance (NHI) will be financed is another item the minister is expected to address. The first phase of the NHI is due to be implemented next year.
Last month, Health Minister Dr Aaron Motsoaledi called on the private sector to assist government in the implementation of the NHI.
