SOE bailouts will not be the hallmark of 7th administration - Godongwana

CAPE TOWN - Finance Minister Enoch Godongwana says bailouts to state-owned enterprises (SOEs) will not be a hallmark of this seventh administration. 

Instead, Godongwana says more money must be thrown at the revenue service to avoid increasing taxes. 

On Thursday, the National Assembly concluded its business for the Parliamentary year by passing the medium-term budget policy statement (MTBPS) tabled by Godongwana in October, despite objection from four parties making up the so-called Progressive Caucus. 

Special appropriations have been made in this mini-budget cycle to cover the South African National Road Agency Limited (SANRAL)’s debt, government’s genocide case against Israel, disaster relief and the deployment of soldiers to the Democratic Republic of Congo (DRC). 

And while cabinet on Thursday lauded the South African Airways (SAA)’s promising financial performance with a net profit of R252 million in the 2022/23 financial year, Godongwana said the fiscus won’t be propping up other SOEs with these windfalls.

“Bailouts are not going to be a key feature of this government. If there’s any expectation that any profit SAA makes must go not to support its growth, it’s an unfortunate expectation.”

Godongwana said he was committed to bolstering the South African Revenue Service (SARS) to clamp down on tax evaders and maximise revenue collection.

“People who owe them have not disputed those amounts. If those amounts were to be collected, I would not raise taxes for the next five years.”

The money bills will now be sent to the National Council of Provinces (NCOP) for concurrence.