You don’t have to be a Chartered Accountant to read the underlying message from Minister of Finance Enoch Godongwana’s Medium Term Budget Policy Statement (MTBPS) today: The so-called Government of National Unity (GNU) is a continuation of more than a decade of government failure. The current government, under the guise of the GNU, continues to lead South Africa down a fiscally unsustainable path, ignoring the reality that we are living beyond our means and spending taxpayer money in ways that yield no meaningful returns.
Simply put. Its more of the same.
Between 2008/09 and 2023/24, government debt has ballooned from R627 billion, or 23.6% of GDP, to a staggering R5.26 trillion – 74.1% of GDP. Consequently, 22 cents of every Rand collected by SARS now goes towards paying interest on this astronomical debt. And what do we have to show for all this debt, accumulated during a period of fiscal recklessness? Collapsing public services, virtually no economic growth to speak of, rising unemployment, and the obligation to repay this debt; a burden that will weigh down future generations for decades to come.
To the Minister’s credit, it is somewhat encouraging to see increased funding for SARS in the budget, showing that the Minister recognises the need to boost SARS’s capacity. ActionSA has been calling for an increase in SARS funding, and although the spending adjustment and further support of R500 million in 2025/26 and R1.5 billion in 2026/27 heeds this call, we maintain that this increase should be closer to R3.6 billion for the current and future years. Properly strengthening SARS should be seen as low-hanging fruit—an easy and impactful way to ensure that every tax rand is effectively utilized.
The 1.1% economic growth projection as outlined in the MTBPS for the current year – an expansion of only 0.4% in the first half of the year – and an average of 1.8% over the next three years, falls dismally short of the 3% GDP growth rate necessary to create meaningful employment and grow South Africa’s tax base. This weak target not only highlights the inadequacies of government’s economic policy but also exposes the reality that the GNU represents nothing more than a continuation of decades of failed policies. Consistently falling short of its own targets, the government appears unwilling or unable to prioritize economic stability or to address the pressing issues facing South Africans.
One stark example of this government’s misplaced priorities is the recent underfunding of the Border Management Authority (BMA), a situation that has left our borders vulnerable. Meanwhile, over the next three years, the cost to deploy troops to the Democratic Republic of Congo (DRC) will cost taxpayers an additional R5 billion, even as the Home Affairs budget faces cuts, an average of 1.7% reduction over the next three years. While R5 billion is allocated for troop deployments in the DRC over the next three years, our border remains vulnerable, with funding for border security diminished.
Amid the financial distress facing South Africans, this government has shown no intent to downsize its bloated Executive. Cabinet Ministers continue to enjoy luxury vehicles and blue-light convoys, ignoring the reality that government finances are stretched thin.
Frontline services such as policing, healthcare, and education bear the brunt of this mismanagement. It’s unacceptable that, while teachers and police officers receive salary increases that barely keep up with inflation, we are spending R700 million to host the G20 conference.
Our teachers are left out in the cold, with barely any real-term increase in their budgets—a situation that does nothing to reverse the negative trends in our education system or improve the daily lives of South Africans.
This budget is a testament to more than a decade of failed policy and misplaced priorities. South Africans deserve leadership that prioritizes sustainable growth, responsible debt management, and effective public services. ActionSA will continue to advocate for change, pushing for policies that create jobs, reduce debt, and ensure that future generations are not left to shoulder the burden of this government’s failures.
A Damp Squib: MTBPS 2024 Falls Far Short of the “GNU Promise”
You don’t have to be a Chartered Accountant to read the underlying message from Minister of Finance Enoch Godongwana’s Medium Term Budget Policy Statement (MTBPS) today: The so-called Government of National Unity (GNU) is a continuation of more than a decade of government failure. The current government, under the guise of the GNU, continues to lead South Africa down a fiscally unsustainable path, ignoring the reality that we are living beyond our means and spending taxpayer money in ways that yield no meaningful returns.
Simply put. Its more of the same.
Between 2008/09 and 2023/24, government debt has ballooned from R627 billion, or 23.6% of GDP, to a staggering R5.26 trillion – 74.1% of GDP. Consequently, 22 cents of every Rand collected by SARS now goes towards paying interest on this astronomical debt. And what do we have to show for all this debt, accumulated during a period of fiscal recklessness? Collapsing public services, virtually no economic growth to speak of, rising unemployment, and the obligation to repay this debt; a burden that will weigh down future generations for decades to come.
To the Minister’s credit, it is somewhat encouraging to see increased funding for SARS in the budget, showing that the Minister recognises the need to boost SARS’s capacity. ActionSA has been calling for an increase in SARS funding, and although the spending adjustment and further support of R500 million in 2025/26 and R1.5 billion in 2026/27 heeds this call, we maintain that this increase should be closer to R3.6 billion for the current and future years. Properly strengthening SARS should be seen as low-hanging fruit—an easy and impactful way to ensure that every tax rand is effectively utilized.
The 1.1% economic growth projection as outlined in the MTBPS for the current year – an expansion of only 0.4% in the first half of the year – and an average of 1.8% over the next three years, falls dismally short of the 3% GDP growth rate necessary to create meaningful employment and grow South Africa’s tax base. This weak target not only highlights the inadequacies of government’s economic policy but also exposes the reality that the GNU represents nothing more than a continuation of decades of failed policies. Consistently falling short of its own targets, the government appears unwilling or unable to prioritize economic stability or to address the pressing issues facing South Africans.
One stark example of this government’s misplaced priorities is the recent underfunding of the Border Management Authority (BMA), a situation that has left our borders vulnerable. Meanwhile, over the next three years, the cost to deploy troops to the Democratic Republic of Congo (DRC) will cost taxpayers an additional R5 billion, even as the Home Affairs budget faces cuts, an average of 1.7% reduction over the next three years. While R5 billion is allocated for troop deployments in the DRC over the next three years, our border remains vulnerable, with funding for border security diminished.
Amid the financial distress facing South Africans, this government has shown no intent to downsize its bloated Executive. Cabinet Ministers continue to enjoy luxury vehicles and blue-light convoys, ignoring the reality that government finances are stretched thin.
Frontline services such as policing, healthcare, and education bear the brunt of this mismanagement. It’s unacceptable that, while teachers and police officers receive salary increases that barely keep up with inflation, we are spending R700 million to host the G20 conference.
Our teachers are left out in the cold, with barely any real-term increase in their budgets—a situation that does nothing to reverse the negative trends in our education system or improve the daily lives of South Africans.
This budget is a testament to more than a decade of failed policy and misplaced priorities. South Africans deserve leadership that prioritizes sustainable growth, responsible debt management, and effective public services. ActionSA will continue to advocate for change, pushing for policies that create jobs, reduce debt, and ensure that future generations are not left to shoulder the burden of this government’s failures.