Budget Speech 2023

Every year in the Budget Speech, sin tax or excise duties increase to demotivate South Africans from smoking and drinking.

The alcohol and tobacco industries reportedly contribute around 10 percent in taxes. So, it is highly likely that alcohol, especially wine, and spirits, will be a few cents or rands higher. In his 2022 Budget Speech, Godongwana announced a general increase in the sin tax on alcohol and tobacco by between 4.5% and 6.5%. In the 2021 Budget Speech, a review of the policy framework for alcohol and tobacco was announced, and Godongwana restated in 2022 following the higher-than-inflation (8%) increases in previous years. Every year in the Budget Speech, sin tax or excise duties increase to demotivate South Africans from smoking and drinking. Bheki Cele couldn’t stop smiling as he helped to pour away a consignment of illegal booze on Monday 18 July – Image: Twitter.

Finance minister Enoch Godongwana has his work cut out for him when he delivers his budget speech on Wednesday as farmers' concerns mount.

We, therefore, call on the minister to increase the current rebate for diesel used in generators,” urged Strydom. [As well as] implementing incentives to promote grid-connected generation capacity and reconnection of off-grid systems.” He is expected to announce whether the increase in the health promotion levy will take effect on 1 April 2023, as previously announced. Matshego believes Transnet will also receive a bailout to help it plug the spending gap created by the higher-than-budgeted wage settlement. “Primary agricultural producers cannot afford an increase,” said Jannie Strydom, CEO of Agri Western Cape. South Africa’s farmers are hoping for a spirit-lifting budget speech from the finance minister, Enoch Godongwana.

Role players expect Minister of Finance Enoch Godongwana to announce support for the agriculture sector as long-shedding and rising input costs see farmers ...

Agri SA said it was crucial that the Minister announced measures to protect the country’s food security. That is what the industry would want him to announce on Wednesday. “Moreover, with President [Cyril Ramaphosa] having announced a tax incentive for businesses to install rooftop solar [panels], Godongwana needs to provide detail on this intervention and any special provisions for the agriculture sector.

While markets may have been underwhelmed by the recent state of the nation address, finance minister Enoch Godongwana's upcoming national budget speech ...

Consider the examples of the Umzimvubu water project and the Ntabelanga Dam. “Attention will turn to resource allocation, as businesses are impatient to see the implementation of government’s plans. “That said, markets are usually boosted by seeing numbers and seeing government put some financial skin in the game, so when the minister puts flesh and bone to the broad ideas outlined in Sona, we could see a turnaround in market perceptions.”

Finance minister Enoch Godongwana faces the task of incorporating a credible debt-relief plan for Eskom in the national budget while stabilising government ...

More than half the economists surveyed see the shortfall swinging to a surplus in 2025, a year later than the treasury previously forecast. Record blackouts will complicate Godongwana’s efforts to convince markets that key fiscal metrics, including the budget gap and primary balance, will improve. But it will also add to the state’s overall debt burden of almost R5-trillion and to its debt-service costs, the fastest-growing expenditure line item for about a decade. Godongwana has previously said national treasury will make relief contingent on Eskom meeting performance targets and the transfer of funds will be staggered. The minister said in October that the state will absorb between a third and two-thirds of Eskom’s liabilities of about R400-billion. Nine of 17 economists surveyed by Bloomberg reckon the government can afford to assume half the utility’s loan obligations without compromising efforts to reduce the budget deficit and rein in debt.

Just like a person needs a budget and a spending plan, the government needs one as well. This helps them allocate the income they receive from taxes to the ...

The government does a budget on an annual basis and as a consumer, it is critical to reassess your current spending and behaviour. “Our clients have access to the Smart Budget tool, located under the nav» Money functionality on the FNB App. The budget is based on the government’s planned spending for the new financial year and outlines the government’s priorities.

Finance minister Enoch Godongwana has his work cut out for him when he delivers his budget speech on Wednesday as farmers' concerns mount.

We, therefore, call on the minister to increase the current rebate for diesel used in generators,” urged Strydom. [As well as] implementing incentives to promote grid-connected generation capacity and reconnection of off-grid systems.” He is expected to announce whether the increase in the health promotion levy will take effect on 1 April 2023, as previously announced. Matshego believes Transnet will also receive a bailout to help it plug the spending gap created by the higher-than-budgeted wage settlement. “Primary agricultural producers cannot afford an increase,” said Jannie Strydom, CEO of Agri Western Cape. South Africa’s farmers are hoping for a spirit-lifting budget speech from the finance minister, Enoch Godongwana.

Finance Minister Enoch Godongwana's highly anticipated address comes amid the country's tough economic times with high unemployment, struggling parastatals ...

Godongwana's highly anticipated address comes amid the country's tough economic times with high unemployment, struggling parastatals crippled businesses and frustrated residents due to load shedding. Finance Minister Enoch Godongwana's highly anticipated address comes amid the country's tough economic times with high unemployment, struggling parastatals crippled businesses and frustrated residents due to load shedding.

When the finance minister presented his budget speech a year ago the socio-politico-economic environment was inhospitable; if anything, the operating ...

That said, the majority of South Africans will probably hope to see, at the very minimum, a plausible, workable, and sustainable plan of action to minimise the debilitating impact of daily power shortages. - The corporate sector and investor community will hope for a significant trimming of the budget deficit, leading to a steady decline in the government debt-to-GDP ratio. The views of columnists published on News24 are therefore their own and do not necessarily represent the views of News24. By spelling out the intended allocation of the revenue to various government programmes, the budget speech provides an indication of the government’s priority preferences and objectives. Of course, even with the best will in the world, it is impossible to deliver this wish list in its entirety. Secondly, the arrangements with regard to the duration, magnitude, and the beneficiaries of social security grants will undoubtedly be announced. In times of severe external constraints, and self-imposed internal structural imbalances, the limitations are even more stark. At the very least, a period of stagflation awaits the world in 2023 – an uncomfortable combination of inflation, and sluggish and tepid economic growth. Moreover, as has been the case internationally, mounting inflationary pressures have prompted a series of increases in the policy interest rate. As is their wont, central banks in numerous countries have reacted by raising interest rates aggressively in an attempt to curb the speed of further price increases. It should also be noted that even before the onset of the Covid-19 crisis South Africa had entered a technical recession. The period of fiscal decline in South Africa coincides with the tempestuous and disconcerting global conditions that have prevailed since 2008/09.