It would be costly to South Africa if budget postponements became the norm – Prof Kenneth Creamer, Presidential Economic Advisor

CapeTalk's Mike Wills on Afternoon Drive is joined by economist and presidential economic advisor Professor Kenneth Creamer.

Listen below:

Last month, many South Africans felt they dodged a bullet when Finance Minister Enoch Godongwana's Budget Speech was postponed.

A proposed 2% VAT hike was put on ice, for the time being

The new-look Budget is due to be presented in mid-March.

A special Cabinet meeting took place on Monday to examine the budget's implications, allowing lawmakers to engage in further discussions about its potential impact on South Africans.

Creamer says it is vital that the members of the GNU used this time to work hard to 'find each other'.

ALSO READ: DA says Budget Speech postponement a 'victory' after its opposition to ANC’s VAT increase

"The political parties in the GNU seem to be trying to negotiate an outcome."

- Professor Kenneth Creamer, Presidential economic advisor

Creamer says if delays such as this become the norm, the consequences would be very serious.

"It is potentially very costly for the country if this becomes the norm. We're used to the budget coming out like clockwork."

- Professor Kenneth Creamer, Presidential economic advisor

The uncertainty created by repeated delays would have a wide-ranging impact, he says.

"It's likely that our credit rating would slip further, our risk premium would increase, and the cost of borrowing would increase."

- Professor Kenneth Creamer, Presidential economic advisor

ALSO READ: Presidency doesn't believe GNU will derail Operation Vulindlela

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