Political parties, private sector react to FinMin Godongwana’s 2024 budget speech

South Africa's Finance Minister Enoch Godongwana's 2024 budget speech has elicited mixed reactions from various political party members and private sector players in the country. The budget, which marks the last of the 6th Democratic Administration, has been met with criticism and concern over the state of public finances and the economic growth trajectory of the nation. In a series of interviews conducted by CNBC Africa, key stakeholders expressed their views on the budget and its implications for the future of South Africa. One of the key themes that emerged from the discussions was the deep concern over the deteriorating state of public finances in the country. Critics highlighted the negligible economic growth rate of 0.6% and the increasing budget deficit, which is projected to rise to 4.9%. The escalating debt service costs, amounting to R356 billion per year, were deemed unacceptable by many, who laid the blame squarely on the ANC government. Several factors were identified as contributing to the financial crisis, including the impact of ESCOM power shedding and logistical challenges affecting commodity exports. The need to address corruption and revenue collection inefficiencies was emphasized as a crucial step towards stabilizing the economy. Calls were made to recover stolen funds stashed in overseas accounts and to collect outstanding debts owed to the receiver of revenue. The decision to tap into the reserves of the South African Reserve Bank to fund public financing was met with apprehension and disappointment by critics, who raised concerns about the long-term implications of such actions. While some positive aspects of the budget were acknowledged, such as the absence of a personal tax increase and a slight increase in social welfare grants, the overall response was lukewarm. The budget was rated poorly by some, with one interviewee giving it a score of two out of ten. The mismanagement of the South African economy over the years was cited as a major contributing factor to the current financial challenges facing the country. The need for effective governance and strategic economic interventions to stimulate growth, create jobs, and reduce inequality was underscored as critical for South Africa's future. The lack of maintenance of existing infrastructure and inefficiencies in trade were identified as key obstacles to economic progress. The budget speech was described as a reflection of the difficult position the government finds itself in, with limited fiscal maneuverability and a dependence on short-term measures to navigate the economic turbulence. As South Africa gears up for elections, the budget speech and its impact on the nation's economic outlook are expected to feature prominently in the political discourse in the coming months.