“There was no need for a budget speech. The minister of finance should have just said we’re still broke and will be for a very long time.”
This is one of the remarks from people online who expressed mixed reactions to Enoch Godongwana’s first budget speech.
Godongwana delivered his much-anticipated budget speech in parliament on Wednesday.
He warned the country is still a long way from a sustainable economic recovery and that spending must still be monitored.
“The improved revenue performance is not a reflection of an improvement in the capacity of our economy.
“As such, we cannot plan permanent expenditure on the basis of short-term increases in commodity prices. To be clear, any permanent increases in spending should be financed in a way that does not worsen the fiscal deficit,” he said.
Godongwana said the budget deficit is projected to narrow from 5.7% in 2021/22 to 4.2% of GDP in 2024/25.
Economic growth has been revised downwards from 5.1% to 4.8% in 2021. Real GDP growth of 2.1% is projected for 2022.