Finance Minister, Enoch Godongwana, will have a tough balancing act as spending priorities compete for limited resources, when he delivers theEconomists believe that top of the agenda of National Treasury’s plan over the medium term, will be the Eskom debt, the public wage bill and social relief amid the rising cost of living and high unemployment.
The National Treasury is expected to revise downward expected growth, as the intense load-shedding continues to drag growth.Economists say personal income tax and value added tax remain robust. Jannie Rossow is a visiting professor at the Wits Business School: “South Africa is in for a sustained period of low economic growth for the reasons that you’ve mentioned and to that of course you have to add the fact that Eskom cannot supply on an uninterrupted basis enough electricity for the economy. So, the government would be bluffing itself and the South African taxpayers if the government gives an impression that the economy will grow at a much faster rate.
The fiscal deficit and debt ratios will likely show some improvement on the back of better than expected revenue collection. But, the high debt levels and servicing costs remain a problem.
Mr happy ending Minister