Analysts expect Budget to be passed this time around

Analysts expect that South Africa’s National Budget will be passed following significant consultation among parties within the Government of National Unity (GNU).

This as Finance Minister Enoch Godongwana prepares to make his third attempt at tabling the Budget on Wednesday, following a standoff over a VAT hike which National Treasury has since withdrawn. Chief Economist at Investec, Annabel Bishop, says while the Budget seeks to raise revenue, government may also be looking to cut down spending and limit borrowing.

“Looking forward, South Africa is not expected to see significant tax increases either. Instead, the Budget is likely to see most of the revenue raised from failure to give bracket relief when people’s salaries rise due to inflation-adjusted increases. Then, if the individual does not see relief in terms of going into a higher bracket, they do end up being taxed more. Also, on the cards, there is potential for a fuel levy and these factors in the main, along with expenditure cuts, should provide a balanced Budget,” says Bishop.

Meanwhile, students at Letaba TVET College in Giyani, Limpopo, want Finance Minister Enoch Godongwana’s Budget Speech to resolve the ongoing issues of National Student Financial Aid Scheme (NSFAS).

Many NSFAS-funded students across the country are facing challenges because of non-payment by the financial scheme.

Some students face evictions from landlords.

One of the students, Thabiso Mavasa, says she hopes that the minister will increase the government’s allocation to the financial aid scheme to ensure that more rural youth can access education.

“We just need the minister to change the struggle of NSFAS, because even now, we are not going to school. We are struggling,” says Mavasa.

Some residents in Giyani, Limpopo, hope that Godogwana will direct funds towards rural development in his Budget Speech.

The residents say lack of employment opportunities and infrastructure development, including lack of telecommunication network in rural areas, hinder communities from bettering their lives.

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