This concern stemmed from the drastic steps proposed by the National Treasury at the end of last year to rein in spending as the government has run out of money and faces a debt trap.<\/p>\n\n\n\n
These measures included a hiring freeze for new public service positions, a halt to procurement contracts for all infrastructure projects, and a limit on public servant salary increases.<\/p>\n\n\n\n
In response to these concerns, Godongwana said the government is working to manage public finances prudently and sustainably.<\/p>\n\n\n\n
He said this includes appropriately responding to the materialisation of risks, including unforeseen economic and financial conditions, and added – to be clear – the government has not run out of money.<\/p>\n\n\n\n
Godongwana reiterated this sentiment with SABC News but added that it would simply increase taxes if the country ran out of money. <\/p>\n\n\n\n
\u201cNo government runs out of money when they can tax people any day<\/strong>,\u201d he said. \u201cIf we were running out of money, we would have increased taxes.\u201d<\/p>\n\n\n\n \u201cWe didn\u2019t do so because we are confident that we\u2019re not running out of money.\u201d<\/p>\n\n\n\n He said the National Treasury has assumed that, over the next years, the economy will grow by 1.6% on average.<\/p>\n\n\n\n \u201cUnless there are too many excessive expenditure increases, which will require a tax increase, you will see in our assumptions over the next three years that we\u2019re not planning major tax increases.\u201d<\/p>\n\n\n\n
![\"\"](\"https:\/\/dailyinvestor.com\/wp-content\/uploads\/2024\/02\/1-7-1024x427.jpg\")