Godongwana set to table ‘disciplined’ mini-budget
Analysts expect Finance Minister Enoch Godongwana to promote fiscal discipline and control spending in his Medium-Term Budget Policy Statement.
Godongwana will table the budget in the National Assembly on Wednesday.
Amid a stable economic environment, some concerns remain over budget risks linked to the May elections, leading to cautious optimism about the government of national unity.
Nedbank economist Isaac Matshego warned that the public sector wage bill remains high, with National Treasury projecting a 3.2% increase, which he suggested is unrealistic unless employee numbers are reduced.
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This while the trade union federation Cosatu is set to lead a picket outside Parliament ahead of Godongwana’s mini-budget.
The federation’s general secretary, Solly Phetoe, will spearhead the demonstration in Cape Town, demanding a bold and progressive budget that stimulates economic growth, creates jobs and ensures the delivery of quality public services.
The Organisation Undoing Tax Abuse has, however, urged Godongwana to prioritise tackling corruption.
The organisation wants reduced spending on non-core state-owned entities and called for funds to be redirected toward critical sectors such as the National Prosecuting Authority and the Special Investigating Unit.
At the same time, Rise Mzansi said that they hope the Medium-Term Budget Policy Statement will demonstrate the government of national unity's commitment to economic growth, job creation and fiscal responsibility.
They called for increased spending on critical infrastructure like transport, water and food production while cutting non-essential expenditures.
