Finance minister faces challenges amid fiscal, economic pressures

AS THE countdown to the tabling of what is known as the “3.0 Budget” begins, Finance Minister Enoch Godongwana is under immense pressure to address a gaping R75-billion budget shortfall.

- MAYIBONGWE MAQHINA

This marks his third attempt at presenting a Budget in over two months, raising expectations and apprehensions alike.

Economist Dawie Roodt said the minister would make sure that, this time, he had the DA's support before he delivers the Budget on Wednesday.

“It will be irresponsible for the Minister of Finance to go into Parliament without the DA’s support. You must get the buy-in of your most important coalition partner, and that of course, is the DA,” Roodt said.

He said, with the VAT increases now scrapped, he did not expect the proposed additional food items to be zero-rated.

However, Roodt questioned whether there would be a further reduction in the increase of the various social grants and the salaries of civil servants.

“Then, if you can’t cut back on spending on people, you cut spending on capital. Although he (Gondongwana) is going to say there will be increased spending on A, B and C, that is probably not going to happen because we simply do not have the money.

“I think what is going to happen is that they (the government) will probably borrow more money than what he initially had in mind,” Roodt said.

DA leader John Steenhuisen was upbeat about the Budget presentation, despite the country being in a tight fiscal spot.