Godongwana seeks Budget 2024 suggestions, but economist warns of inflexibility due to high debt

South African taxpayers will soon know where their hard-earned money is going once Minister of Finance, Enoch Godongwana delivers his highly anticipated National Budget Speech in February.

But, prior to the announcement, Godongwana has called on South Africans to share their suggestions on the budget.

National Treasury on Monday, put out the notice inviting the nation to share their thoughts.

According to the department, the budget allocation aims to strike a balance between growing the economy and supporting the vulnerable amid limited resources.

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Crucial issues

The minister is calling on South Africans to provide their input on crucial issues such as how cities and towns manage their money, where the government should prioritise spending, ways to tackle a significant budget shortfall, strategies to stabilise the finances of state-owned entities, addressing the energy crisis, ideas for managing taxes, and ensuring that the country’s debts are sustainable in the long run.

But economic analyst, Professor Bonke Dumisa, has said it cannot be “business as usual budget”, considering that our national government debt is already exceeds R4.8 trillion.

“At present, our national government debt exceeds R4.8 trillion and is expected to top R6 trillion by 2025/2026.

“We simply cannot expect a business as usual budget despite this being an elections year,” he emphasised.

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“The government must resist recklessly competing with the thousands of political wannabes who are promising everything for free, as if money grows on trees.”

Meanwhile, some South Africans have already sent through their suggestions:

This citizen is proposing a strategy where waste renewal efforts would be tied to the country’s tax and grant systems. This means that the government could provide incentives or consequences related to taxes and grants based on how well individuals or communities contribute to the renewal or proper disposal of waste.

Zama Qwabe wants the government to prioritise food security in the budget speech. Qwabe emphasised the importance of Extension and Advisory services in achieving this goal. Additionally, Qwabe mentions the premature termination of 5000 Agricultural Assistant Practitioners contracts in July of the previous year, which is a concern regarding the impact on the agricultural sector and the economy.

Contributions can be sent through to the National Treasury website here: https://bit.ly/3ruszsi. The minister has asked South Africans to keep their contributions concise and to the point, and on social media to use the hashtag #TipsForMinFin and #Budget2024