BUDGET2022: Economists, business give a cautious thumbs-up to Godongwana’s maiden financial plan for SA

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Finance Minister Enoch Godongwana’s debut Budget has been given a cautious thumbs-up by economists and business groups. No one is popping the Champagne cork, which is now more expensive, but no one is drowning their sorrows in a bottle of pricier brandy either.

Finance Minister Enoch Godongwana had a tough balancing act on Wednesday and the consensus among economists and business is that he managed to stay upright. The ANC is known for its statist instincts, but as the governing party’s long-time economic guru, Godongwana is keenly aware of the need to talk to capital. Its reception is crucial to his credibility.

“While South Africa is clearly not out of the woods regarding the fiscal situation yet, we have come a long way and we are now in a vastly improved position with significantly less debt default risk compared with two years ago. Plus, we are strongly – albeit slowly – moving in the right direction,” Els said in a commentary.

The tax measures have been widely welcomed, with the only increases being sin taxes – including sugar – and carbon tax.

 

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