South Africa should think about moving to a zero-based budget, the finance minister said on Friday, ahead of an emergency budget dealing with the economic impact of the Covid-19 pandemic.
Tito Mboweni is expected to unveil a major shake-up in spending and revenue forecasts for the recession-hit economy when he tables a supplementary budget pencilled in for 24 June.
A new situation in my view … requires that we think seriously about going to zero-based budgeting,” Mboweni said during a debate on the 2020 budget appropriation bill, which was passed.
Currently, national treasury provides budget forecasts for up to three years ahead.
Mboweni said the new approach would allow the government to refocus attention on growth-enhancing initiatives and that it could “no longer take for granted that the baseline that was there last year will always be the case”.