The Medium-Term Budget Policy Statement (MTBPS) comes at a time of severe turbulence in the global economy. This is the last MTBPS to be introduced in the Third Parliament. The economic slowdown and projected decline in revenue may require changes in medium-term budget proposals. This in turn will place greater importance on domestic policies, with the need to ensure that funds are directed at those sectors and programmes which have the greatest impact on the lives of South Africans.