Mini budget a delicate balancing act for Godongwana – expert
A business expert says the finance minister has been given the enormous
task of building economic
resilience in the face of
numerous uncertainties.
Enoch Godongwana will deliver his mini-budget in the National Assembly on Wednesday.
Raymond Parsons, who is a professor at the North West University’s business school, says given our domestic and global economic setbacks, Godongwana will need to promote business confidence and maintain fiscal credibility.
"The good news is the minister does have some room to manoeuvre. Thanks to good commodity prices, windfall tax gains and indeed continued fiscal consolidation."
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Parsons says the minister will have to make tough decisions on social grants, the survival of Eskom and public sector wage negotiations.
"The challenge is going to be, will they be able to balance the books in the way given what he's got on the revenue side, given concerns on not wanting to escalate the national debt but at the same time, wanting to meet some of these spending requirements in a responsible way."
