Some political parties against Godongwana raising taxes

Some political parties in Parliament want Finance Minister Enoch Godongwana to commit to economic growth when he delivers his Budget Speech on Wednesday.

They want the budget to mark a turning point for the economy and also focus on debt containment and are against increases in taxes.

Several sectors have also raised concerns that there will be increased spending on State Owned Enterprises (SOEs).

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

Godongwana will deliver his first budget under the Government of National Unity.

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

Chief Economist at Deloitte Hannah Marais said the challenge will be balancing stagnant revenue with the country’s spending needs.

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