BUDGET SPEECH: Finance Minister Enoch Godongwana to hit us with VAT hikes?

John Maytham is joined by News24 writer-at-large Carol Paton.

Listen below:

As South Africa braces for Wednesday's Budget Speech, the spotlight is focused on the challenges for the country's economy.

With a looming revenue shortfall and escalating spending pressures, the demands on the fiscus grow ever more strident.

Finance Minister Enoch Godongwana's presentation is set to be a pivotal moment for the country's economic landscape.

Paton says the minister has suggested to the cabinet that he may need to increase taxes, but adds that it's not a done deal. 

"We don't know what he's going to do. Obviously, there's a lot of debate about it. Nobody wants to raise taxes. It's never good for the economy. It takes money out of the economy."

- Carol Paton, Writer-at-large - News24

Paton says tax hikes are seen as a last resort, but at the same time, the country has been unable to get its debt burden under control.

"Every year we say we're going to get it under control... and it just doesn't happen."

- Carol Paton, Writer-at-large - News24

So what are the alternatives to a tax hike?

Paton admits the options are limited.

"I do think they could make a hell of a lot more effort to relook at the size of the State and what we spend our money on and the size of government departments."

- Carol Paton, Writer-at-large - News24

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