The 2020 Budget Objectives and Thrust

The 2020 National Budget marks the transition from austerity to a growth stimulation and employment generation era.

Strong emphasis is now on reviving key sectors of the economy through promotion of production oriented investment and productivity, without losing focus on fiscal responsibility.

21.  The growth thrust is being prompted by glaring supply side deficiencies which have undermined stabilisation efforts.

Currently, average industry capacity utilisation stands at around 35%, while industrial output is below 60% of 1980 levels.

This position reflects through high import dependence (40% of GDP), high unemployment and informalisation levels in the economy.

22.  Therefore, the 2020 Budget prioritises the following areas:

•       Growth and productivity;

•       Job creation;

•       Competitiveness; and

•       Strong, Sustainable and Shared Development.

23. The proposed supply side interventions combined with continued and strengthened stabilisation reforms, coupled with progressing of the reengagement process with the international community, will constitute integral pillars of the 2020 Budget.

24. To contextualise the 2020 National Budget, it will be helpful to highlight both global and domestic economic developments and outlook to 2020.