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Business Standard
a day ago
- Business
- Business Standard
World is witnessing trade policy dislocation, says finance ministry
The finance ministry on Wednesday said the world has witnessed 'trade policy dislocation' as well as 'escalating conflicts' across West Asia since the presentation of Union Budget 2025-26 (FY26) in February. The ministry cited the presence of these risks to the world economy for its inability to present a Medium Term Expenditure Framework (MTEF) 2025 under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. '…The required projections cannot be made with any degree of certainty,' it noted in a statement on half yearly review of the trends in receipts and expenditure in relation to the budget at the end of the financial year 2024-25, tabled in Parliament. 'The Government while presenting the Union Budget for FY 2025-26 had informed Parliament through the Medium-Term Fiscal Policy Statement (MTFPS) and the Fiscal Policy Strategy Statement (FPSS) that rolling targets for FY 2026-27 and FY 2027-28 could not be provided mainly on account of continuing global uncertainty and visible benefits of retaining flexibility in conducting fiscal policy operations,' the statement noted. 'To prepare the MTEF Statement, certain assumptions are made regarding the growth rate of the economy, buoyancy of various taxes, trajectory of non-tax receipts of the Government, etc. These variables are then used to estimate the overall resource position of the Government which in turn is used to make meaningful expenditure projections and rolling targets for the upcoming fiscal years,' it pointed out. However, the finance ministry said the government remains committed to achieving the glide path of fiscal consolidation. 'Since FY 2021-22, adoption of an operationally flexible fiscal consolidation path has served the country well. India is now set to attain the goal outlined in the Budget for FY 2021-22 and reach fiscal deficit level below 4.5 per cent of GDP in FY 2025-26,' it said. The FY26 Budget has laid down a path for fiscal consolidation for FY 2026-27 to 2030-31. 'Sans any major macro-economic disruptive exogenous shock(s), and while keeping in mind potential growth trends and emergent development needs, the Government would endeavour to keep fiscal deficit in each year (from FY 2026-27 till FY 2030-31) such that the Central Government debt is on declining path to attain a debt to GDP level of about 50±1 per cent by 31st March 2031 (the last year of the 16th Finance Commission cycle),' the finance ministry said in the statement.
eNCA
20-07-2025
- Business
- eNCA
Treasury shoots down SANDF funding criticism
JOHANNESBURG - National Treasury is responding to criticism from Navy Chief Admiral Monde Lobese. He accused Treasury of sabotaging the SANDF during a Joint Standing Committee of Defence meeting. Lobese says Treasury cannot operate like a super department or a government on its own. The SANDF has been allocated 1.7 percent of the country's GDP, just over R57-billion. But, Treasury has hit back, saying it's wrong to suggest the department is responsible for the army's funding crisis. It says Cabinet decides on allocations. In addition to funding distributed for this financial year, the SANDF has also been allocated R4.3-billion in the 2025 Medium Term Expenditure Framework and R5.5-billion for early retirement for the current and next financial years.
eNCA
20-07-2025
- Business
- eNCA
Treasury fires back at SANDF funding criticism
JOHANNESBURG - National Treasury is responding to criticism from Navy Chief Admiral Monde Lobese. He accused Treasury of sabotaging the SANDF during a Joint Standing Committee of Defence meeting. Lobese says Treasury cannot operate like a super department or a government on its own. The SANDF has been allocated 1.7 percent of the country's GDP, just over R57-billion. But, Treasury has hit back, saying it's wrong to suggest the department is responsible for the army's funding crisis. It says Cabinet decides on allocations. In addition to funding distributed for this financial year, the SANDF has also been allocated R4.3-billion in the 2025 Medium Term Expenditure Framework and R5.5-billion for early retirement for the current and next financial years.
Eyewitness News
30-06-2025
- Business
- Eyewitness News
Gauteng govt says it is making progress in paying of its e-toll debt
JOHANNESBURG - The Gauteng government is making progress in paying off its e-toll debt, with a further payment of R3.3 billion expected to be made to the South African National Roads Agency (SANRAL) on Monday. Finance MEC Lebogang Maile announced at a media briefing on Sunday that this marked the department's second payment. ALSO READ: Gauteng govt set to make second payment of e-toll debt on Monday When the e-toll system was abolished, National Treasury agreed to cover 70% of the debt, leaving the province responsible for the remaining 30%. The province has now paid off nearly half of its R15.9 billion e-toll debt. Maile emphasised that the province remained committed to settling the debt. "We wish to announce that tomorrow, the 30th of June 2025, the Gauteng Provincial Government will honour the province's obligation by paying the second instalment towards the e-tolls debt as disclosed in the 2025 Medium Term Expenditure Framework (MTEF). "The second amount due on the 30th of June 2025, based on the memorandum of agreement, is R3.377 billion in terms historical debt. This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30% contribution."
IOL News
30-06-2025
- Business
- IOL News
Gauteng commits to R3. 3 billion e-toll debt payment amid ongoing road upgrades
Finance MEC Lebogang Maile, is set to make a landmark payment of R3.3 billion on Monday, fulfilling the provincial government's commitment to cover 30% of the provincial e-toll debt. Image: Itumeleng English/independent Newspapers Finance MEC Lebogang Maile has committed the province to paying off its 30% portion towards servicing the e-toll debt with the provincial treasury expected to make the payment of R3.3 billion towards the debt on Monday. This comes more than six months since the province made the first payment of R3.8 billion in September last year following the scrapping of the e-toll system early in 2024 with the National Treasury having agreed to cover 70% of the debt as the province took responsibility for the remaining 30%. According to reports, the debt is set to be repaid in five annual installments. On Sunday, during a press briefing, Maile indicated that an amount of R5.76 billion will be paid on Monday for the e-toll debt while another portion will be paid towards SANRAL freeway upgrades. "We are committed to increasing efficiency and systems, cost effectiveness and eliminate leakages. Identifying potential new revenue collecting sources that have not been explored and the use of alternative funding and implementation models to achieve more value. We are confident that alongside other interventions such as implementation of advanced technology and digitisation of our supply chain management, we will be able to realise the objectives that we have set before ourselves with the revenue enhancement strategy," he said. Maile revealed that the provincial government has been making progress in paying off its e-toll debt. "To restate, the Gauteng Provincial Government will tomorrow, make a transfer total of R5.76 billion towards the e-toll debt and the contribution towards the Sanral Gauteng freeway improvement project. There is much more work that still needs to be done to unpack the financing model.... We wish to announce that tomorrow, the 30th of June 2025, the Gauteng Provincial Government will honour the province's obligation by paying the second instalment towards the e-tolls debt as disclosed in the 2025 Medium Term Expenditure Framework (MTEF). "The second amount due on the 30th of June 2025, based on the memorandum of agreement, is R3.377 billion in terms historical debt. This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30% contribution," he added. Maile added that the province will be embarking on various alternative ways to fund road upgrades stating, "For the policy perspective and financial impact as well as practical solutions. Of the studies undertaken by Sanral, there exists institutional knowledge in terms of the new routes and upgrades on new routes.
