BUDGET 2023 UPDATES | Gordhan welcomes R254bn debt relief for Eskom

February 23 2023 - 13:44

R14.3bn budget allocation increase not enough for broke municipalities, says union

Despite billions of rand being allocated to the country’s 257 municipalities, the South African Municipal Workers’ Union (Samwu) says it will not be enough to alleviate pressure on those struggling to pay salaries and too broke to deliver basic services. 

On Wednesday, finance minister Enoch Godongwana delivered the 2023 budget speech in parliament and announced that local government allocations would increase by R14.3bn. This includes R8.1bn in local government equitable share (can be used on whatever a municipality deems a priority) and R6.2bn in conditional grants. Godongwana said municipalities would benefit from R522bn in direct allocations. He said those struggling financially and indebted to Eskom would receive relief.

Reacting, Sawmu general secretary Dumisane Magagula said many municipalities had financial problems, with some unable to deliver services to residents.

February 23 2023 - 12:48

Budget 2023: CEOs of top food retailers want government to rethink diesel fuel levy refund

Pick n Pay CEO Pieter Boone, Spar CEO Mike Bosman and Shoprite Checkers CEO Pieter Engelbrecht have implored the government to reconsider its decision on the diesel fuel refund levy. 

“The government has accepted the logic that the food industry should not be penalised for the energy crisis but has only done half the job,” they said in a joint statement on Thursday.   

February 23 2023 - 09:19

RATE IT | Booze, grants and solar panels: How do you feel about these 6 budget speech announcements?

Here are six announcements made by the minister — tell us what you think of them

February 23 2023 - 08:18

Struggling SA sports federations allotted average R6,000 increase each

Enoch Godongwana’s budget will offer little respite to the country’s cash-strapped national sports federations, which can look forward to an average increase of R6,000 each in the coming year.

The finance minister on Wednesday set aside R117.5m — 8% of the sport budget — for “various sport federations”, which translates into an increase of R450,000, or 0.38%, on the R117.1m appropriation for the current year.

Most of South Africa’s 75-odd sports bodies were up in arms last year over the late approval of funding applications by the department of sport, arts and culture (DSAC), as well as the ad hoc nature of the annual grants.

February 23 2023 - 07:03

Here's how social grants will change after the budget speech

An amount of R66bn has been allocated to social development in the budget, R36bn of which is to fund the extended R350 social relief of distress (SRD) grant until March 2024.

Finance minister Enoch Godongwana made the announcement on Wednesday during his 2023/24 budget speech.

February 23 2023 - 06:57

Gordhan welcomes Treasury’s R254bn debt relief for Eskom

Public enterprises minister Pravin Gordhan has welcomed the announcement Eskom will receive R254bn in debt relief from the National Treasury. 

In his budget speech on Wednesday, finance minister Enoch Godongwana set aside funds to service Eskom’s debt obligations over the next three financial years.

The government will also take up R70bn debt from Eskom’s balance sheet, reducing the huge debt to sustainable levels.

February 22 2023 - 20:10

BUDGET WRAP 2023 | Huge debt relief for Eskom, tax rebates for solar

Government will not take over R56.3bn municipalities owed to Eskom unless there is a clear plan on how to prevent them from defaulting in future

February 22 2023 - 17:34

Political parties criticise Godongwana for not making ‘bold moves’

Reactions have poured in after finance minister Enoch Godongwana’s budget speech, with political parties slamming the minister for promising to “show tough love” in the much-anticipated budget but falling short of the balancing act of addressing the country’s immediate issues and long-term expenditure plans.

The DA criticised the budget outcomes, calling it another “missed opportunity” for the country.

February 22 2023 - 14:43

BUDGET 2023 | Eskom debt relief plan has overshadowed financial woes of other SOEs

The huge R245bn debt relief plan that finance minister Enoch Godongwana announced for Eskom makes it easy to forget the financial straits that other state-owned entities (SOEs) find themselves in. 

Godongwana came to the rescue of some SOEs while others were left to approach the markets or make do with in-year allocations to tide them over. 

February 22 2023 - 14:22

BUDGET 2023 | R9bn in tax relief through solar power rebate

Homeowners and business intending to invest in rooftop solar panels and other renewable energy sources to escape load-shedding will soon benefit from tax breaks.

Finance minister Enoch Godongwana announced in his budget speech that households could claim up to R15,000 in tax rebates starting from March 1 for installation costs of photovoltaic rooftop solar panels.

February 22 2023 - 14:22

BUDGET 2023 | 'Be prepared for possible greylisting'

Finance minister Enoch Godongwana’s 2023 budget is committed to funding institutions aimed at fighting organised crime, but South Africans should be prepared for a possible greylisting announcement by Friday evening, he warned. 

Since the Financial Action Task Force (FATF) alerted the country to the risk, citing gaps in measures aimed at addressing money laundering and organised crime, the government has championed the General Laws (Anti-Money Laundering and Combating Terrorism Financing) and Protection of Constitutional Democracy Against Terrorist and Related Activities amendment acts..

February 22 2023 - 14:19

BUDGET 2023 | Godongwana warns of tax hike if calls for basic income grant persist

Finance minister Enoch Godongwana has warned he will have no choice but to increase taxes if he’s forced to introduce a basic income grant.

Godongwana was speaking at a briefing in Cape Town before tabling the 2023/2024 budget in parliament on Wednesday.

“I’m not raising taxes this year but next year is a different ball game. I’ll raise taxes for different reasons; there’s always a warning which we did in February last year, we’re repeating that warning.

February 22 2023 - 14:15

BUDGET 2023 | Cigarettes and alcohol prices hiked

True to tradition, finance minister Enoch Godongwana has hit smokers and drinkers hard in the pocket.

Godongwana has increased sin taxes or excise duties by 4.9% for the 2023/2024 financial year.

February 22 2023 - 14:06

BUDGET 2023 | Government takes up massive chunk of Eskom’s debt

The government has absorbed a massive chunk of Eskom’s R423bn debt, providing the ailing power utility with debt relief of R254bn in the next three years.

This was one of the major announcements made by finance minister Enoch Godongwana during the tabling of the 2023/2024 budget in parliament on Wednesday.

February 22 2023 - 14:06

Budget 2023: an overview

Having collected tax revenue of R1.9 trillion, consolidated expenditure for 2023/24 is R2.2 trillion

February 22 2023 - 12:00

Budget 2023: Equal Education calls for ‘enough funding’ to eradicate pit toilets in schools

Losing young lives to drownings in school pit toilets in rural areas must stop, a civil organisation has pleaded.

Equal Education has appealed to National Treasury, ahead of finance minister Enoch Godongwana’s budget speech on Wednesday, to ensure no more lives are lost in state school pit latrines.

February 22 2023 - 07:00

Budget 2023: 5 wishes for Godongwana’s speech

All eyes will be on finance minister Enoch Godongwana when he delivers his much-anticipated budget speech in parliament on Wednesday afternoon.