2025 Budget Speech: Social grants likely to be bigger focus than NHI, says economist

JOHANNESBURG - Some economists believe National Treasury will kick the can on the National Health Insurance down the road a little longer, amid predictions of the Budget Speech.

Finance Minister Enoch Godongwana is set to table the Budget Speech at the National Assembly on Wednesday.

In previous years, the allocation for spending on health and education has dominated Treasury’s plans.

This is in addition to expenditure on the high wage bill and the runaway debt servicing costs.

While the government previously announced it would take years for the NHI fund to be established and even longer for universal health to be rolled out, questions have again resurfaced about what Godongwana is likely to say about it this time around.

Citadel’s chief economist, Maarten Ackerman, said social grants were more likely to be a bigger focus.

"The social cohesion of the country is very much reliant on that and if we are in a position where we can’t pay those grants or keep them up with inflation, then you can really create a lot of social tension, which is unnecessary."

ALSO READ:

• Some economists divided on possible tax hikes in Godongwana's budget
• Some political parties urge Godongwana to cut govt perks, not hike personal taxes or VAT