A realistic budget – commendable in an election year: BLSA
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GUEST – Busi Mavuso – CEO of the Business Leadership South Africa
Finance minister Enoch Godongwane delivered a strong budget that commits government to appropriate spending levels given the weak economic outlook. This is positive for business, which needs reassurance that fiscal discipline will be maintained, despite pressure for increased spending from many quarters of government.
He was realistic that economic growth is going to remain subdued in the short term. The effects of the weak economy over the past year were reflected in a sharp deterioration in tax revenue collection for 2023/24 to R1.73tn, R56.1bn lower than estimated in the 2023 Budget.
Finance minister Enoch Godongwane delivered a strong budget that commits government to appropriate spending levels given the weak economic outlook. This is positive for business, which needs reassurance that fiscal discipline will be maintained, despite pressure for increased spending from many quarters of government.
He was realistic that economic growth is going to remain subdued in the short term. The effects of the weak economy over the past year were reflected in a sharp deterioration in tax revenue collection for 2023/24 to R1.73tn, R56.1bn lower than estimated in the 2023 Budget.
