Treasury Circles February 21 for Budget Speech - South African News Briefs - January 23, 2023

South Africa's national budget day, scheduled for 21 February, awaits final confirmation, with Finance Minister Enoch Godongwana signaling significant government cost-cutting measures and the need to recoup about R15 billion in taxes, reports News24. Analysts remain skeptical about the government's commitment to austerity, particularly in an election year. The debate over raising the additional funds has included concerns about potential increases in value-added tax, but economists suggest achieving the amount through various means, such as avoiding adjustments to tax brackets to prevent bracket creep. The budget will also address issues like load shedding, Eskom's debt, Transnet, and state-owned enterprise bailouts. Godongwana emphasizes the importance of addressing structural problems in sectors like electricity and Transnet, with no new allocations or support for state-owned companies in the next two years. Social welfare grants and borrowing plans will be central to discussions, aligning with the fiscal consolidation desired by rating agencies. As the date approaches, the National Treasury enters a close-out period until 20 February, with senior officials occupied in budget preparations.

This article originally appeared on AllAfrica

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