Kaya 959 Reporter
As Finance Minister, Mr Enoch Godongwana, prepares to deliver his inaugural National Budget Speech on 23 February, he is faced with what can arguably be expected to be the most challenging budget speech of all time.
What are some of the predictions of what we will be part of his speech?
Kaya Biz recently hosted a pre-budget roundtable discussion where they unpacked some of the key areas the budget will include. The panel included:
- Isaah Mhlanga, Chief Economist Alexander Forbes;
- Sifiso Skenjana, Chief Economist At IQ Business
- Busisiwe Mavuso, CEO of Business Leadership SA
Human Capital Growth
“There’s quite a handful of legacy challanges we have to adress, we haven’t dealt with the human capital development component. When we talk about a budget that is pro-poor.”
“It’s really about persuing our human delopment index. It’s about looking at factors around multi-demensional poverty. ” says Sifiso Skenjana, Chief Economist At IQ Business
“One of the things that the government is talking about which is atleast progressive, is machenisms to close the digital divide and bringing access to the internet. “
Building business confidence
Busisiwe Mavuso, CEO of Business Leadership SA said we are in a better position in terms of tax revenue collection, he said the minister will have to send a strong message to inspire business confidence.
“What is going to be important is the steps to be taken to build business confidence.”
“The minister is going to have to give an affirmationn and a strong message, that fiscal connsolidattion is still our true north, and that efforts will intensify in this regards.”
No new groundbreaking reforms
Mavuso also spoke about how based on the State of the Nation (SONA) address, that there seems to be no grounndbreaking interventions or reforms bieng put in place by the government.
‘During the SONA, we were waiting for another big bang announcement… I think it was more promises, more plans and more commmitees being set up, to attend to things we’ve been talking about for quite a long time.”
He says he doesn’t foresee the minister pulling new tricks out of his hat.
Also Read: Increasing calls for no major tax increases in next week’s Budget Speech
World Bank Loan
Isaah Mhlanga, Chief Economist Alexander Forbes says the minister will also have to share how they will continue with capitalising on debt deplomacy as well ensuring the economy recovers beyound the loans taken from the World Bank.
“We’ve spoken about the likes of China coming in with debt deplomacy in th continent, what tend to be missing with most of these brentwood instittutions like the IMF and the World Bank is that alot of the borrrowing programs doesn’t support the country beyonnd the borrowing itself.”
“Becuase once you get into a borrowing spiral, you get exposed to the vultures thatt come for you. ” says Mhlanga.
Other issues the panel adressed were
- The Public Sector Wage Bill,
- Lack of Electricity Generation in South Africa
- as well as the Human Capital Growth.
- Universal Income Grant.
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