Following two failed budget attempts, South Africans are waiting with bated breath to hear what Minister of Finance Enoch Godongwana will announce when he tables Budget 3.0 on Wednesday.
Stellenbosch Business School economist Andre Roux said the minister should prioritise economic growth and job creation over simply balancing the books. Roux emphasised that increasing personal or corporate taxes could be detrimental to the economy.
“After weeks and weeks of going back and forth, we are hoping that Budget 3.0 would be a case of third time is a charm. I suspect the budget will be adopted this time around. The shortfall between government spending and tax revenue remains a massive problem,” he added.
ActionSA has stated that the revised budget must lay the groundwork for long-term, stable economic growth. According to Matthew George of ActionSA, Budget 3.0 must tackle widespread corruption in government departments and state-owned enterprises, ensure the South African Revenue Service (SARS) is adequately funded, and protect financially strained citizens from additional tax burdens.
“ActionSA also proposes replacing the current Broad-Based Black Economic Empowerment (BBBEE) system with one based on merit and genuine need and will introduce the Inclusive Economic Empowerment (IEE) Act, which includes the establishment of an Opportunity Fund, to promote equality of opportunity over equality of outcome, and move away from the failed policies of BBBEE,” he shared.
The Public Servants Association (PSA) has called on the minister to address overcrowding in schools and correctional facilities, as well as the lack of resources in hospitals and clinics.
PSA’s Claude Naiker said they are also urging Godongwana to allocate sufficient funds for the hiring of staff across government departments.
“The Minister of Finance is expected to provide adequate budget for infrastructure development that is critical for the safety of employees and the public as well as being an investment in the country’s economy and infrastructure. The PSA calls for the allocation of funds to improve public servants’ working conditions, including improved facilities, access to the necessary tools and resources, and measures to ensure safe and healthy work environments,” he stressed.
