Minister of Finance Enoch Godongwana will present the budget allocation for 2024 to Parliament in the Cape Town City Hall toady -Wednesday, 21 February, at 14:00.
According to a statement issued by Parliament, Godongwana’s budget speech will, among other things, balance economic growth and support for the vulnerable in society, despite limited resources. He is expected to outline all the financial, economic and social commitments that government will prioritise in its planned expenditure.
Pres. Cyril Ramaphosa paved the way when he delivered the state of the nation address (Sona) on Thursday, 15 February. He outlined the national government’s plans to tackle the country’s energy crisis and other socio-economic challenges.
In addition, Godongwana is expected to provide a detailed plan for 2024 spending, including proposals for revenue collection to help fund government’s planned interventions and commitments. During the budget speech, he is expected to also introduce the Appropriation Bill and table the Division of Revenue Bill, which Parliament will process in the months coming.
Ania Strydom, compliance research manager at PaySpace, said state debt, which ramped up considerably in 2020 during the Covid-19 pandemic, remained a grave concern.
“State debt increased to 70% of gross domestic product (GDP) threshold in 2021. Despite a brief dip in 2022, the debt surged again and is now consistently above that mark. In real terms, the minister will need to raise an additional R15 billion for the 2024-’25 fiscal year and faces a significant revenue shortfall totalling around R111 billion,” said Strydom.
