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.

Godongwana is set to deliver his budget speech at 2pm. It follows President Cyril Ramaphosa's state of the nation address, where he discussed how government planned to address SA’s energy crisis and prevailing socioeconomic challenges.

According to the ministry of finance, the budget allocation speech will aim to strike a balance between competing national spending priorities and the limited resources available to the National Treasury.

Topics expected to be covered by Godonwana include stabilising state-owned entity finances such as Eskom's, the large budget deficit, tax revenues, municipal finances and more. 

Any changes announced by Godongwana on Wednesday come into effect in April.

Here are five things South Africans wish to hear in the budget speech:

No increase on beer tax

The Beer Association of SA (Basa) said tax relief was the least the government could do to help its members, whose businesses had been devastated by load-shedding.

The association’s members include the Craft Brewers’ Association of SA, Heineken SA and SA Breweries (SAB).

Basa said the effects of prolonged load-shedding come as thousands of businesses in the beer industry are still trying to recover from the Covid-19 lockdown and four alcohol bans.

“Ongoing power outages have impacted the entire beer value chain, with craft brewers — who barely managed to keep their doors open during the Covid-19 pandemic — most acutely affected. Brewers need at least nine hours of uninterrupted electricity supply to brew beer, which means load-shedding above stage 3 makes it impossible to complete this process.”

Increasing the R350 SRD grant

EFF leader Julius Malema called on government to increase social grants, saying no child or adult could survive and thrive on R350 or R450 per month.

During the debate on the state of the nation address, Malema called out Ramaphosa for extending the R350 social relief of distress (SRD) grant for another year.

“That SA has close to 20-million people who are dependent on social grants is not a cause for celebration, particularly when viewed with the fact that social grants do not eliminate poverty,” said Malema.

He reiterated the grant should be increased but not made a permanent solution.

“Without a job many people are condemned to abject poverty. There is absolutely no child and no adult who can survive and thrive with R350 or R450 per month, worse in a country with rising costs of living. Not even the dogs of the president survive on R450 per month.

Bring SME onboard to help fix the energy crisis

In his address, Ramaphosa indicated that state-level measures to help small businesses install solar power and energy-saving devices would be rolled out including through the adjustment of the bounce-back loan scheme.

“Bringing SMEs into the supply chain for alternative, renewable sources of energy that will relieve pressure on the grid is one way government can boost the sector,” said Jeremy Lang, chief investment officer at Business Partners Ltd.

“Rooting out procurement corruption and driving policy reform in ways that are favourable to the development of small businesses, is just as crucial as providing financial means of relief.”

Privatisation of Eskom 

The DA called for the privatisation of Eskom and the opening of the energy sector to Independent Power Producers (IPPs).

The party said Eskom should prioritise the streamlining of its procurement processes while letting in huge private capacity to power SA.

“By opening the energy sector, innovation and voluntary action will keep the lights on and the wheels of the economy moving towards the growth rate needed to address declining economic participation,” said DA shadow minister of finance Dion George.

He said Godongwana’s budget should provide a fiscal framework focused on reducing the deficit while stimulating growth through responsible spending.

Invest in transport-related infrastructure

Last year, Godongwana committed R17.5bn to the launch of infrastructure catalytic projects. 

“While good examples of planning have been seen in provinces such as KwaZulu-Natal, a more targeted approach to dealing with obstacles that are the most imperative to the growth of small businesses, is what’s needed,” said Lang. 

According to Lang, initiatives such as the African Continental Free Trade Area are effective “in principle, but not in terms of practicality”, given the poor state of South African rail and road infrastructure. 

“A single-minded focus by the public sector on resolving these issues should be a top budgetary priority,” he said.