Godongwana’s mini-budget - which seeks to raise taxes - will sharply hurt the poor and escalate the cost-of-living crisis
1 November 2023
The Medium-Term Budget Policy Statement delivered by Finance Minister Enoch Godongwana highlights that the ruling party has run out of ideas to grow the economy and create jobs. Combined with reckless spending this has left South Africa in a dire financial strait, which will disproportionately hurt the most vulnerable members of our society in the face of the escalating cost-of-living crisis.
Four years since former Finance Minister Tito Mboweni delivered the ‘Aloe Vera’ Budget Speech in 2019 where he warned that unless public spending is controlled the country will face a fiscal cliff, Godongwana’s mini budget on Wednesday showed that unproductive and irresponsible spending by the ruling party has rather ballooned while the economy was mismanaged.
Instead of providing new and innovative ideas to tackle the cost-of-living crises faced by millions of South Africans, Minister Godongwana’s budget will inflict more pain with steep spending cuts, planned increases in taxes of R15 billion and below-inflation adjustments for frontline services such as healthcare, policing, and education.
This while the minister failed to address the government’s key impediment to economic growth: the mismanagement of public money and the looting of public coffers. South Africa does not have a funding problem but simply does not get enough return on the money it is currently spending.