WATCH LIVE: Godongwana delivers 2023 budget speech

Finance Minister Enoch Godongwana is on Wednesday afternoon delivering the 2023 budget speech in Parliament, Cape Town.

2023 budget speech

The much-anticipated budget speech comes against the backdrop of South Africa’s sluggish economic growth, crippling energy crisis, rising food prices, and other prevailing socio-economic challenges.

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Godongwana is expected to provide details of spending and revenue collection proposals to implement President Cyril Ramaphosa‘s plans outlined in the State of the Nation Address, earlier this month.

The minister will also introduce the Appropriation Bill and table the Division of Revenue Bill to Parliament.

Godongwana will deliver the budget speech to the National Assembly in the Cape Town City Hall at 2pm.

WATCH LIVE: 2023 budget speech

Godongwana faces a daunting task when he delivers the 2023 budget on Wednesday.

Economic research group, Oxford Economics Africa, says we already know that the social relief of distress (SRD) grant of R350 will continue, but with the fiscal cliff looming, fiscal consolidation remains a key requisite for financial stability and in ensuring debt sustainability.

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With this in mind, a tax increase might be coming.

“Although government allowed R5.2 billion in tax relief during last year’s budget, announcing higher personal income tax will be difficult to justify, raising the value-added tax (VAT) rate could offer the quickest and most direct support to the fiscus although it will be an unpopular move.”

The group says Godongwana has so far demonstrated pragmatism, but he is also a member of the ruling ANC and bound by its overall policies.

Compiled by Thapelo Lekabe. Additional reporting by Ina Opperman.

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