Finance Minister Enoch Godongwana is set to deliver the highly anticipated national budget speech on Wednesday afternoon, outlining how the government plans to allocate R2 trillion in public funds over the next year.
This will be his first budget under the Government of National Unity, and economists warn that difficult decisions lie ahead to address the country’s rising debt.
“The long-term plan of National Treasury remains fiscal consolidation—reducing South Africa’s debt levels,” said economist Lisette IJssel de Schepper. “To achieve this, spending cuts are necessary, as raising revenue is a more challenging option.”
She also cautioned that a budget shortfall is inevitable. “The revenue collected will not be enough to cover all debt. The key question is how large this shortfall will be.”
Amid speculation of possible tax hikes, the Democratic Alliance’s Mark Burke expressed concern, warning against placing further strain on taxpayers.
“We need to grow the economy, not overburden South Africans with higher taxes,” he said.
Godongwana’s address is expected to shed light on the government’s strategy to navigate economic pressures while balancing public spending and revenue collection.