Summary: Budget Speech 2024

Finance Minister Enoch Godongwana delivered the 2024 Budget speech on 21 February
2024. A written budget outlines how money is collected in the economy and how it will be
spent during a certain economic period and the primary goal is to make sure that all of
the demand are prioritised in the correct order of significance. The 2024 budget strikes a
balance between healthy public finances and development. The government will
safeguard vital services and encourage economic growth through reforms, public
investment and manage public debt in the face of chronically lagging economic growth.
 In terms of the economic outlook, the estimated GDP growth for South Africa has
been reduced to 0.6% from 0.8% growth estimated during the 2023 MTBPS as a
result of numerous power outages, operational maintenance issues with goods
trains and ports and expensive living expenses.Global growth is forecast to
increase, from 3.1% this year to 3.2% in 2025.
 In terms of the Budget framework, the government is sticking to the 2023 Medium
Term Budget Policy Statement (MTBS) fiscal approach expecting to achieve a
primary budget surplus in 2023/2024 and debt stabilisation in 2025/2026. The
cost of debt servicing as a % of revenue will peak in 2025/2026 and decrease
thereafter.
 Spending programmes funding has increased, in 2024/2025 R2,37 trillion will be
spent by the government and only R2,47 trillion will be spent in 2025/2026
economic period. R251,3 billion has been added to the MTEF to ensure that
salaries of public servants are funded. In 2024/2025 R7,4 billion will be allocated
for the president’s employment plan and the social wage will account for 60,2%
on average of all non-interest expenditure.
 Tax proposals have also been reviewed, the government wants to reduce
economic strains by proposing tax increases of R15 billion for 2024/2025.Tax
revenues for 2023/2024 is R561 billion lower than the estimated in the 2023
Budget. Kamo says ‘’ I would suggest an introduction of tax payment for hubbly
bubbly, e-cigarettes and other alternatives’’. Excise taxes on some tobacco
products would rise from 4.7% to 8.2% while charges on alcohol will rise from
6,7% to 7.2%.
 Exports and imports are expected to increase in the 2024/2025.
In conclusion of the budget speech, the 2024/2025 expenditure has been reviewed ,
consolidated government expenditure amounts to R2.37 trillion, R1,41 trillion will be
spent on social services such as basic education, NSFAS etc, all learning and culture
amounts to R480,6 billion, R244 billion will be used to fund peace and security such as
police services, law courts and prisons etc, R271 billion will be spent on health , RR74
billion will be spent on general public services, R265,3 billion will be spent on community
development, R382 billion will be spent on debt-service costs, R5,0 billion on
contingency reserve and R387,3 billion on social development. Minister of finance
concluded the speech by saying “I want to remind South Africans that the message they
should take from the budget is this: government is making the most out of very limited
resource”.
Reference list:
 Department of National Treasury Republic of South Africa. Budget
Review 2024. www.treasury.gov.za.

 Enoch Godongwana (2024). Finance Minister Enoch Godongwana's 2024 Budget

speech. https://www.news24.com/fin24/budget/news/read-in-full-finance-minister-

enoch-godongwanas-2024-budget-speech-20240221