‘Godongwana has challenge to balance stagnant revenue with spending’

Economists expect the upcoming Budget Speech to outline economic projections similar to those presented in the Medium-Term Budget Policy Statement.

Finance Minister Enoch Godongwana will deliver his Budget Speech on Wednesday next week, his first under the Government of National Unity.

Despite the geopolitical uncertainty and the diplomatic rift between the US and South Africa, economists believe there are still many opportunities for the country.

VIDEO| On Sunday, US signed an Executive Order targeting South Africa by formally cutting off aid:

Chief Economist at Deloitte Hannah Marais says the challenge going forward will be balancing stagnant revenue with the spending needs of the country while enabling growth.

“Particularly also looking at the second phase of ‘Operation Vulindlela’, ultimately broadening some of the reforms that are already under way. They are starting to bear fruit, so ultimately alleviating basic supply side constraints to growth largely linked to the electricity sector, and increasingly also linked to the logistics rail and freight sector will unlock growth in the medium term.”

VIDEO | The Medium-Term Budget Policy Statement: