Treasury Circles February 21 for Budget Speech
South Africa’s national budget day, scheduled for 21 February, awaits final confirmation, with Finance Minister Enoch Godongwana signaling significant government cost-cutting measures and the need to recoup about R15 billion in taxes, reports News24. Analysts remain skeptical about the government’s commitment to austerity, particularly in an election year. The debate over raising the additional funds has included concerns about potential increases in value-added tax, but economists suggest achieving the amount through various means, such as avoiding adjustments to tax brackets to prevent bracket creep. The budget will also address issues like load shedding, Eskom’s debt, Transnet, and state-owned enterprise bailouts. Godongwana emphasizes the importance of addressing structural problems in sectors like electricity and Transnet, with no new allocations or support for state-owned companies in the next two years. Social welfare…