Finance Minister Enoch Godongwana will deliver the National Budget Speech tomorrow afternoon. The speech comes amid a cost of living crisis and general uncertainty in the lead-up to the 2024 Elections. The minister will provide an update on the Government’s fiscal performance and outline its policy that will guide spending in the medium-term expenditure framework (MTEF).
Opposition parties expect the finance minister to give more money to failing state-owned enterprises (SOEs). The Democratic Alliance (DA) presented their Alternative Budget for 2024 yesterday. DA shadow finance minister Dr Dion George said President Cyril Ramaphosa’s administration had impoverished millions of South Africans. “Many struggle to afford basic necessities, and millions are suffering from hunger. Unemployment continues to rise as business bears the brunt of constant rolling blackouts while rapidly increasing debt is crowding out more and more basic service delivery,” said George. In their budget, the party highlighted four core policy priorities on which they want to focus:
1. Establishing the Foundations for Sustainable Economic Growth that Generates Jobs
2. Revitalising the Electricity Sector to Address Ongoing Power Outages
3. Achieving Fiscal Stability through Controlled Government Expenditure and Debt Reduction
4. Supporting Vulnerable South Africans by Protecting Social Wages
“Major reforms are required for South Africa to recover. Market-oriented reform starts by removing government-imposed barriers to growth. A government that is effective at serving the public limits regulation and focuses on delivering essential services. This is what will create a dynamic, enterprising economy, with market forces and individual freedom at the forefront,” they said.
Build One South Africa (BOSA) leader Mmusi Maimane wrote, in an opinion piece, that the minister needed to focus on three things that are certain to drive up investor confidence: energy, safety and infrastructure. “To attract the investment needed to spur growth from the currently predicted 0.9% to 5% and more requires a solid and certain economic terrain,” says Maimane. He highlighted that South Africa faced a grim future without focusing on these three aspects. “We cannot tax our way to prosperity. We cannot borrow our way to prosperity. We can only grow our way to prosperity. And this hinges on building world-class infrastructure that incentivises large-scale investment into our country,” he said.
The Inkatha Freedom Party (IFP) said it expected nothing new from the budget speech and that it did not matter since “nothing will change under an ANC administration.” They warned the minister against delivering a speech that would only sound nice to the electorate but that the government cannot implement. “History has proven that the ANC is not willing to listen to any advice on growing the economy. If one considers all the money that has been spent on every department over the years, it is shameful that instead of moving us forward, the public’s money has been lost to corruption and maladministration,” the party said.
The African Christian Democratic Party (ACDP) expected increased budget deficit and government debt levels in the speech. “The ACDP believes that the only long-term solution to this debt spiral is a rejuvenated economy, premised upon stable energy provision and a vastly improved logistics network.” The party said they did not support tax increases, given the financially tricky situation households and businesses face.
