MTBPS: Daunting day ahead for Godongwana
Finance Minister Enoch Godongwana has the daunting task of outlining the government of national unity’s commitment to economic growth while carefully balancing spending.
That is the view of economist Dawie Roodt ahead of Wednesday afternoon's Medium-Term Budget Policy Statement in Parliament.
Roodt says with the economy failing to meet previous performance expectations, Godongwana faces a difficult job.
"State revenue or tax collections are likely to be under some pressure. On the spending side, there is huge pressure on the Minister of Finance from just about all quarters. We know about education. What about state-owned enterprises like the Post Office and Transnet? They are bankrupt as well, and they all want more money.”
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Godongwana is expected to present the country's policy goals and financial forecast for the next three years.
Economist Bonke Dumisa believes the spotlight should be on future growth objectives.
"Last year's public servants' wage bill rose by more than 7.5%, and then economic growth was at 0.6%. That is unsustainable. We hope that the government is not going to lose the stamina to resist high salary increases."
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