Godongwana's budget hit the right notes, say some economists
As broadly expected, the budget embodied several financial buffers for the medium-term fiscal challenge, including tight spending decisions, debt management and tax adjustments to balance the books.
Finance Minister Enoch Godongwana tables Budget 2024. Image: National Treasury RSA on Twitter
JOHANNESBURG - Some economists believe Finance Minister Enoch Godongwana struck all the right chords in his Budget Speech on Wednesday.
Godongwana walked a complex tightrope of tough economic and political decisions within a limited fiscal space.
Despite the little wiggle room, he believes the 2024 budget will address macroeconomic stability, structural reforms and improvements in state capability to raise growth rates.
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The finance minister described his budget speech as a mix of tough economic decisions with some political flavour.
He reiterated the overall need to slow the growth of national debt and lower its cost with a number of measures intended to bridge the fiscal gap.
As broadly expected, the budget embodied several financial buffers for the medium-term fiscal challenge, including tight spending decisions, debt management and tax adjustments to balance the books.
But Godongwana raised some concerns.
"Our challenge, honourable members, is that the size of the pie is not growing fast enough to meet our developmental needs."
Economist at North West University Business School, Raymond Parsons, said he believed Treasury was on the right track.
He added tha a clear, confidence-building economic strategy, coupled with growth friendly structural reforms could put South Africa on the path to recovery after the May elections.