South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg.South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg.
However, with relatively high debt levels, the National Treasury has been looking to cut expenditure and reprioritize spending with its limited resources. For the 2022/2023 fiscal year, they penciled in a decline in non-interest spending of around 0.5%. Some believe that the Social Relief of Distress Grant, which was introduced at the height of the COVID-19 pandemic, could become a permanent feature.
Godongwana has recently indicated that detailed announcements will be made about Eskom’s debt come Wednesday. Current revenues appear healthy but there’s a warning that they may not be sustained at these levels.
With too many trade-offs, the future of our economy remains highly uncertain and it looks like there aren't easy alternatives.