Finance Minister Enoch Godongwana delivered the 2024 National Budget Speech on Wednesday, 21 February.<\/p>\n\n\n\n
The budget touched on many points and topics, including the country\u2019s current economic standing, growth estimates, the massive debt servicing costs, heightened sin tax proposals and the extension of the social relief grant, among others.<\/p>\n\n\n\n
South Africa\u2019s economy faces a tipping point, with growth estimates from analysts and researchers pointing downwards. <\/p>\n\n\n\n
Continual rolling blackouts are showing little sign of stopping, while port and rail inefficiencies and a high sovereign credit risk remain threats to economic growth in the country, the minister said.<\/p>\n\n\n\n
The fiscus <\/strong><\/p>\n\n\n\n Compared to a year ago, the budget deficit for 2023\/24 is estimated to worsen from 4% to 4.9% of GDP. <\/p>\n\n\n\n The higher budget deficit means that debt-service costs in 2023\/24 have been revised higher by an additional R15.7 billion to R356 billion. <\/p>\n\n\n\n Debt-service costs will absorb more than 20% of revenue, said Godongwana.<\/p>\n\n\n\n “To put this into perspective, spending on debt-service costs is greater than the respective budgets for social protection, health, or peace and security,” he said. <\/p>\n\n\n\n Debt will now peak at 75.3% of GDP in 2025\/26.<\/p>\n\n\n\n