Budget 3.0: Godongwana makes renewed calls for SA to get its fiscus in order
Since the first two iterations in February and March, the global economic landscape has changed, pushing South Africa into an even tougher fiscal corner.
Finance Minister Enoch Godongwana, arriving at the Cape Town International Convention Centre on Wednesday, 21 May 2025. Picture: Thabiso Goba/ EWN.
CAPE TOWN - Finance Minister Enoch Godongwana has delivered a sobering budget, making renewed calls for the country to put its fiscal house in order as global and economic weaknesses persist.
Godongwana presented his budget for a third time in the National Assembly on Wednesday afternoon.
ALSO READ: Budget 3.0: Treasury expects to save billions through expenditure reviews
Since the first two iterations in February and March, the global economic landscape has changed, pushing South Africa into an even tougher fiscal corner.
The international environment is now characterised by trade volatility and policy uncertainty, mostly sparked by the return of US President Donald Trump to the Oval Office.
With global growth faltering, South Africa’s economic outlook has also weakened, with GDP expected to grow by only 1.4% in 2025.
The previous projection sat at an ambitious 1.9% for the same period.
Revisions to the March 2025 budget review projections reduce anticipated revenue and spending, but departments largely retain their baselines, and critical service delivery areas are protected.
Godongwana says the fiscal strategy remains on track so that the government spends less on debt-service costs and more on critical public services.
“This is not an austerity budget.”
With an economy barely hitting the right notes, Godongwana says the third version of the budget has allocated funds to shore up infrastructure investment and accelerate structural reforms to ensure improved growth.