Budget speech: SA still headed for trouble, just at a slower pace, says expert

Everyone, from the average Joe to the Joneses, was worried about what bad news the budget speech would bring and complained about feeling the inflation belt squeezing their wallets and budgets.

Logan Steyn, whose third child is due in March, said her budget is in shambles.

“Currently, my credit cards are like many others, maxed out and being paid off monthly, just to use the money again. The same with the overdraft,” she said. Steyn said she was praying for an increase.

“The truth is you start cutting on your groceries because you can’t skip rent or school payments,” she said.

Shelter owner Melodie van Brakel said the price increases of basic food products that poorer people eat were frightening.

“The recent petrol price increase has caused the price of the 250 bread loaves we buy every day to go up by R1 per loaf. That’s R250 a day and R5 000 per month. For us it was a great blow,” she said.

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Van Brakel said the people were hungry.

“The poorer people are suffering and it is simply impossible to survive on a [South African Social Security Agency] pension, or a child allowance. Baby formula is so expensive you can barely buy one can with the child allowance,” she said.

Taste of India restaurant co-owner Khaja Mainuddin said he had noticed people who used to eat out every week were only coming in once a month.

“When we ask what’s the reason, they say money is limited and expenses too much,” he said.

He said the clients preferred the takeaway service. Mainuddin said to cut costs, people travelled less. Jude Peter said he struggled to earn a decent living, while the government sent R50 million to Cuba.

If government reduced inflation and increased the Sassa grants, it could help people get ahead in their finances again.

“Government is failing us because the unemployment rate is high,” he said.

Peter said he had to cut costs by staying in. Tumisha Mphahlele said petrol and food costs were where she felt inflation most in her budget.

“We cut out all the fun, like going out and to family, just to be able to afford the basics,” Mphahlele said.

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Steve Cele said things were looking up for him after relocating from KwaZulu-Natal to Pretoria to work for Nando’s full-time.

“Accommodation, moving around in Ubers, is expensive. Even if you try and get a car, petrol is also expensive,” he said.

Economist Dawie Roodt said: “There are people who are doing well under the circumstances and people who are struggling – and [then] few in the middle.”

Roodt said poverty has increased in general. “Some people are doing so well they can’t keep up, while others don’t know where the next bread will come from,” he said.

Roodt said while the budget speech would contain less bad news this year, “we are still headed for trouble, just at a slower pace”.

– marizkac@citizen.co.za