BUDGET PRESSURES MOUNT ON GODONGWANA

Growing consensus against austerity cuts

- MAYIBONGWE MAQHINA

AS FINANCE Minister Enoch Godongwana prepares to present the Budget for the 2025/26 financial year today, he finds himself walking a tight-rope amid mounting public pressure.

This is as some want the South African Revenue Service (Sars) to be properly funded to collect more tax, while others insist that Godongwana should introduce wealth tax and draw down from the Gold and Foreign Exchange Contingency Reserve Account (GFECRA).

However, Godongwana has previously said South Africa already has instruments that tax wealth comprehensively, while the National Treasury stated that GFECRA was designed to protect the credibility, independence, and stability of the SA Reserve Bank (SARB) and the economy.

It will be the third time Godongwana tables the Budget after he postponed the initial presentation in February following warnings from the DA that it would withdraw its support. He scrapped plans to increase VAT amid a court case with the DA and the EFF, as well as negotiations with the ANC and the smaller political parties.

Business Leadership South Africa CEO Busi Mavuso said a technical question that must be answered is what expenditure cuts will have the least damage on growth or service delivery.

"I hope the finance minister will be able to announce credible steps to reduce expenditure, and I hope we quickly see the political support to do so. That is what will give comfort to investors - that we are a country that can politically manage its finances appropriately," she added.