Boosting ANC election prospects through budget speech would be a blunder – Economist

Lester Kiewit speaks to Isaac Matshego, Senior Economist at Nedbank’s Group Economic Unit.

Listen to the interview in the audio below.

This Wednesday South Africans can tune in to hear the 2024 budget speech.

The Finance Minister has to address a number of challenges that will affect us as individuals and taxpayers.

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Matshego says that Government finances are not in a good state as the budget deficit is continuously rising.

“We have seen for almost a decade the increasing government spending far exceeding the growth of tax collections.”

- Isaac Matshego, Senior Economist at Nedbank’s Group Economic Unit

 As a result, we could see an increase in taxes which could be an added burden on the consumer.

He adds that we will likely see another major bailout package from the government for Transnet.

With elections looming, Matshego says he hopes the decisions made in the budget speech are not done to try and increase support for the ANC.

“That would be a major blunder that would worsen government finances.”

- Isaac Matshego, Senior Economist at Nedbank’s Group Economic Unit