“Mr Austerity” as Finance minister Enoch Godongwana jokingly referred to himself, announced the following changes today in the Medium-Term Budget Policy Statement:
⬇️ Revenue collections for 2022/23 now projected at R1.68-trillion, down R56.8-billion from the projections proffered in February.
- Personal income tax – down 1.3%
- Companies tax – down 0.3%
- VAT – down 3.9%
⬇️ Spending for 2022/23 reduced by R21-billion.
Further spending cuts – R64-billion (2024/25) and R69-billion (2025/26)
⬆️ Social grants – R34-billion to extend SRD grant for another year to end March 2025.
⬆️ Public wages – Another R24-billion this year, and R74-billion over the medium term to fund the 2023/24 wage increase.
No more Mr Nice Guy
? Eskom bail-out – changed from a no-interest loan to an interest-bearing loan
? Transnet – no bail out or assistance until progress has been made towards enhancing efficiencies, facilitating competition and leveraging financial and technical support of the private sector. DM
Read more: More tax to come, but no SOE bailouts, as Godongwana juggles public finances to extend R350 grant
Read Finance Minister Enoch Godongwana's Medium-Term Budget Policy Statement below:
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