By Thebe Mabanga
Finance Minister Enoch Godongwana will present the budget on Wednesday at a time when government arguably has more fiscal breathing room than it has had in years — possibly even since before the pandemic, and perhaps since before the global financial crisis.
How he chooses to use that space will signal whose interests are being prioritised, especially in an election year.
Annabel Bishop, Chief economist at Investec, describes the backdrop as benefiting from a “sentiment lift” that includes a credit ratings upgrade and removal from the Financial Action Task Force (FATF) Greylist.
Locally, low inflation and falling interest rates, as well as a stronger rand, round off a benign economic picture despite poor economic growth, expected to reach 1,5% this year.
Bishop emphasises the need to use the expected tax windfall from higher commodity prices and overall revenue overrun well.
The first challenge Godongwana will face is to
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