Business Maverick

MEDIUM-TERM BUDGET POLICY STATEMENT

Budget in a box — your summary here

Budget in a box — your summary here
Enoch Godongwana, South Africa's finance minister, during an interview following the budget presentation in Cape Town, South Africa, on Wednesday, Feb. 22, 2023. (Photo: Dwayne Senior/Bloomberg via Getty Images)

Key take-aways from the Medium-Term Budget Policy Statement tabled on Wednesday, 1 November 2023.

“Mr Austerity” as Finance minister Enoch Godongwana jokingly referred to himself, announced the following changes today in the Medium-Term Budget Policy Statement:

⬇️ Revenue collections for 2022/23 now projected at R1.68-trillion, down R56.8-billion from the projections proffered in February.

  • Personal income tax – down 1.3%
  • Companies tax – down 0.3% 
  • VAT – down 3.9% 

⬇️ Spending for 2022/23 reduced by R21-billion.

Further spending cuts – R64-billion (2024/25) and R69-billion (2025/26)

⬆️ Social grants – R34-billion to extend SRD grant for another year to end March 2025.

⬆️ Public wages – Another R24-billion this year, and R74-billion over the medium term to fund the 2023/24 wage increase. 

No more Mr Nice Guy

🙂 Eskom bail-out – changed from a no-interest loan to an interest-bearing loan

🙂 Transnet – no bail out or assistance until progress has been made towards enhancing efficiencies, facilitating competition and leveraging financial and technical support of the private sector. DM

Read more: More tax to come, but no SOE bailouts, as Godongwana juggles public finances to extend R350 grant

Read Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement below:

Gallery

Comments - Please in order to comment.

  • I dont know how long will the government keep paying this R350 social grant?At the moment there are no plans fron this government as to what are they doing to reduce unemployment in the country.We need a plan to curb the level of unemployment so that these billions which are now given to those that are not employed,could be channelled eslewhere.

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