Short-term risks to the local and global economy identified at the time of the budget in February have materialized, Godongwana said in an emailed copy of a speech to a public finance management conference on Wednesday. Ongoing power cuts, logistical constraints and the consequences of a campaign to loot state funds during former President Jacob Zuma’s nine-year presidency had made the difficult fiscal situation more challenging, he said.
There’s"tremendous strain on the financial resources we have available to address our most urgent service delivery priorities," said Godongwana, who is due to deliver a budget update on November 1."We have faced similar challenges in the past and managed to make the necessary policy decisions and trade-offs to navigate the storm."
The National Treasury has already signaled to government departments that they will need to pare back spending if it is to meet its debt-stabilisation targets. Expenditure cuts will come at a difficult time for the ruling ANC, which is gearing up for elections next year and is at risk of losing its national majority for the first time since it took power in 1994. A deep dive into the big business story of the week, as well as expert analysis of markets and trends.