Budget 3. 0: Godongwana's Crucial Task Amid Economic Pressures
As Finance Minister Enoch Godongwana tables the budget for the third time next week, DA leader has given him thumbs up saying he has succeeded in doing a very good balancing act
Image: Picture supplied
As South Africa inches closer to the tabling of what is known as the '3.0 Budget' for the 2025-26 financial year, Finance Minister Enoch Godongwana is under immense pressure to address a gaping R75 billion budget shortfall.
This marks his third attempt at presenting a budget in just two months, raising expectations and apprehensions alike.
Economist Dawie Roodt said Godongwana will certainly make sure that he has the DA on his side and the DA's support for his budget.
'It will be very responsible for the Minister of Finance to go into Parliament without the DA's support. You must get the buy-in of your most important coalition partner, and that of course is the DA,' Roodt said.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
He also said with the VAT increases scrapped, he did not expect the zero-rating of the proposed additional food items.
However, Roodt said the question was whether there will be a further reduction in the increase on the various social grants and the salary increase for civil servants.
'Then lastly, if you can't cut back on spending on people, then you cut back on spending on capital. Although he is going to say he is going to increase spending on A, B and C, that is probably not going to happen because we simply do not have the money.
'I think what is going to happen is that they will probably borrow more money than what he initially had in mind,' Roodt said.
DA leader John Steenhuisen was upbeat about the 3.0 Budget despite the country being in a tight fiscal spot.
Steenhuisen, who is also the Agriculture minister, said he was comfortable with the budget his department has received.
'I think what Minister Godongwana has succeeded in doing a very good balancing act and I think we're going to see a budget that will pass the House quite easily and we can then get on with the process of building the economy,' he said, adding that they have to see the final budget.
'Certainly what I've seen to date I'm incredibly comfortable with and I think that Minister Godongwana as I said has done a really effective balancing act that will see no extra borrowing and no extra taxation on an already burdened sector, no VAT increase.
'Our people can breathe that sigh of relief and I think that it's a sign that the government has listened to what the people have said and we now have a budget that I think will, it's never going to satisfy everybody but I think it's a good start now for us to have a platform to start growing the economy so we don't end up fighting over who's going to get taxed more, who's getting cut and how we're going to spend.
'We are going to be focusing on what we do with the extra revenue that comes through with the economic growth that we hope we can stimulate,' Steenhuisen said.
ActionSA, which is credited for offering the ANC support to pass the fiscal framework last month, called on the Government of National Unity to stop dithering and deliver real, practical reforms in Budget 3.0 to address South Africa's deepening jobs crisis.
'It is time for leadership that prioritises the people — not political deals, not bureaucratic delays, not excuses,' said MP Alan Beesley earlier this week.
ActionSA parliamentary leader Athol Trollip told the SABC that they were not consulted as they were not part of GNU.
'What we do expect to see, though, is that the Minister takes into account that there's blanket opposition to any form of increased taxation. We also need to see, the government must be prudent in its affairs,' Trollip said.
Build One South Africa leader Mmusi Maimane said the budget must demonstrate to the people that there have been the necessary expenditure cuts so that the politicians aren't getting the benefit.
'We have got to see cuts in certain expenditure. We have got to see the eradication of wasteful expenditure. We've got to ensure that more money is directed towards the program that's been expressed in the growth chart,' he said.
ANC secretary-general Fikile Mbalula toldthis journalist at the memorial service of late secretary-general Duma Nokwe that his party supported a budget that was pro-growth, that addressed unemployment and that was also pro-poor.
It is 'pro-poor in the sense that it seeks to intervene and address what is in the ANC manifesto,' Mbalula said.
Cosatu hopes that the government will not disappoint workers and the nation when the revised budget is tabled.
'We cannot afford a return to the brutal austerity budget cuts inspired by a misplaced belief in neo-liberalism that has crippled frontline public services which the working class require to survive,' said Cosatu's parliamentary coordinator Matthew Parks.
Parks said revenue must be secured by providing the South African Revenue Service the resources it needs to tackle tax evasion and customs fraud.
'SARS must be empowered and tasked to raise tax compliance from 64% to 70% generating over the Medium-Term Expenditure Framework, thus raising additional R120 billion annually in revenue owed to the state,' he added.
FAST COMPANY
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
an hour ago
- TimesLIVE
Universities and TVETs owe NSFAS R11.94bn, says Nkabane
Higher education and training minister Nobuhle Nkabane says universities and Technical and Vocational Education and Training (TVET) colleges owe the National Student Financial Aid Scheme (NSFAS) R11.94bn for the 2017 to 2023 academic period. This was revealed in a written parliamentary question from the DA. Universities owe R10.46bn, while TVETs owe R1.48bn. Nkabane said the amounts are subject to a reconciliation process between NSFAS and the institutions. 'Institutions are expected to sign an agreement on assets and liabilities relating to the student accounts,' she said. 'NSFAS is preparing the 2024 reconciliations.' This comes amid challenges facing NSFAS, including student accommodation and funding issues. Recently, students at the Northern Cape Urban TVET college in Kimberley protested by burning offices because of delays in receiving their NSFAS allowances. The DA urged NSFAS to use the recouped funds to address some of the issues faced by students. 'Given the recent mid-academic year defundings of NSFAS students that force many of them to abandon their studies or leave them destitute and hungry, the DA encourages NSFAS to use the recouped funds to ensure students receive their allowances on time and to ensure no student is defunded midyear, especially if NSFAS previously indicated they would be funded. 'While the DA understands NSFAS must root out payments to students who do not meet the funding requirements, midyear defundings is a NSFAS failure to process students correctly and in time and should not be used to punish students.'
Mail & Guardian
an hour ago
- Mail & Guardian
At least three officials must collude to create one ghost worker, says public service chairperson
Graphic: John McCann/M&G Creating one ghost employee on the public payroll requires the collusion of at least three officials, the chairperson of parliament's portfolio committee on public service and administration said on Monday. Jan de Villiers also said that the era of treating ghost workers as a clerical irregularity was over. 'This is not merely a payroll anomaly. It is a deliberate and orchestrated form of The briefing follows a renewed government focus on eliminating waste and corruption in the public sector wage bill, triggered by Finance Minister Enoch Godongwana's Godongwana announced a sweeping expenditure review of more than R300 billion in government spending since 2013, using a data-driven strategy to root out inefficiencies, including ghost employees. De Villiers said the portfolio committee, acting on this directive, convened on 28 May to interrogate the pervasive and corrosive problem of ghost workers. Its conclusion was that the issue was systemic, criminal and far more widespread than previously acknowledged. 'The department of public service and administration confirmed before parliament that ghost workers are present across all three spheres of government — national, provincial and municipal. They are also embedded in state-owned entities and agencies,' De Villiers said. Among the examples cited were 230 unverifiable employees whose salaries were frozen by the Gauteng department of health in May, and R6.4 million in salaries paid to ghost workers in the Mpumalanga department of education, which was uncovered by the During a September 2024 hearing, the standing committee on public accounts was briefed by the Special Investigating Unit (SIU) on the discovery of 1 277 ghost employees in the Passenger Rail Agency of South Africa's (Prasa) system. According to the SIU, These were not isolated incidents, De Villiers warned. 'The numbers are staggering. They are not anomalies. They are symptoms of a system that needs structural intervention.' The creation of a ghost employee required collusion, De Villiers said. 'At least three officials need to work together to insert a ghost worker into the payroll system. This means we are dealing not with random lapses in judgment, but embedded criminal syndicates.' Although efforts were under way to identify and remove ghost employees through integrated audits between the department and the treasury, De Villiers said more was required. 'A data audit alone is not enough. Every person drawing a public salary must be verified in person and through biometric identification. The public has the right to know the names on the payroll correspond to individuals who really exist and who serve the public,' he said. 'Currently, the three tier authentication system used to validate employee status is open to manipulation. Internal controls have failed. Oversight has been diluted. The opportunity for fraud persists because the tools needed to prevent it have not been enforced, and worse, have been exploited by those meant to protect them.' Departments must take the lead in developing a formalised framework to ensure protection and prevention, and regular audits searching for ghost employees should be carried out, he said. The framework will mandate formal, periodic payroll audits and reconciliation, in person verification and biometric registration, centralised authorisation of appointments and terminations and digital certification of employee attendance and performance. The committee would also call on the auditor general to expand its scope, said De Villiers, requiring that all department and entity audits include a verification of whether internal ghost employees audits have been conducted and whether they were done credibly. 'We will push for disciplinary and criminal action to follow every detection of ghost workers. Names must be handed over to the SIU, the Hawks and the South African Police Service. Fraudsters must not be shielded by departmental silence or internal collusion,' he said. Consequences of inaction were 'grave', he added. 'Every ghost worker represents a post that could have been filled by a qualified graduate, a dedicated nurse, a teacher at a rural school, or a social worker supporting the vulnerable. Every fraudulent salary paid is a step backwards in the fight for a professional, ethical and responsive, responsive state. 'In light of this, the portfolio committee cannot and will not stand idle. Among our priorities in the seventh parliament is to push for the cleanup of the PERSAL system, which remains the foundation of the human resources and vital records in the public sector.' Incomplete performance reviews, poor attendance tracking, and manual leave registers must become early warning indicators, and should trigger automatic investigations. Asked by journalists about the departments most affected by ghost workers, De Villiers said the issue was impossible to localise. 'Every single department, agency, level of government, and state-owned enterprise probably has ghost workers,' he said. But, he added, positions that involved out-of-office work were more easily exploited. He said the lack of uniformity in how public servants were employed — each department using its own HR processes without central oversight — was part of the problem. 'We need a national approach, led jointly by DPSA [department of public service and administration] and treasury, and involving the auditor general, Cogta [department of cooperative governance and traditional affairs] and law enforcement.' The departments would reconvene in the third quarter of 2025 to review progress, scope, preliminary findings, and enforcement mechanisms, De Villiers said. 'This is not going to be another talk shop.'
The Herald
2 hours ago
- The Herald
DA's Helen Zille sparks debate over potential Joburg mayoral run
DA federal council chairperson Helen Zille has sparked a heated debate on social media after expressing interest in running for mayor of Johannesburg in the 2026 local government elections. Zille has reportedly been approached to become the DA's candidate for Johannesburg mayor, and is considering it. This has drawn support and criticism from social media users, with some expressing confidence in her leadership abilities and others voicing concerns about her suitability for the role. Zille has held several key leadership roles in the DA, including being premier of the Western Cape and mayor of Cape Town. Some social media users believe her experience and track record in governance make her a strong candidate for the position. On X Khaya Dlanga said if Zille contests for Joburg mayor, she would win. 'She has a proven record of turning a city around. Look at Cape Town. You can debate her politics all you want, but she gets things done,' Dlanga said. 'Joburg, as it stands, is crying out for that kind of leadership and Cape Town has the lowest unemployment rate of all major cities. If this happens, the ANC will lose Johannesburg for good. When Joburg goes, so does Gauteng. People are tired. They want working traffic lights, clean streets, functioning municipalities, not endless excuses. Everyone is complaining about what the ANC has done to the city. Zille offers a real alternative.' John Haines on Facebook described Zille as a 'competent and highly educated woman with moral standards', making her the best person to turn the city around. 'That is the only thing the country needs to grow. If we can only appoint people with these standards from local municipalities to government, we will excel in our economy.' Ntshimane Thubakgale on Facebook believed Zille would steer the ship towards the right direction. 'She's not a pushover and will be able to deal with issues facing Joburg and return it to its former glory.' Johannesburg has been grappling with issues, including infrastructure challenges and service delivery problems such as unrepaired potholes, water and electricity outages and dysfunctional traffic lights. The city's mayor Dada Morero has announced plans to improve the city through his 'bomb squad'. Some social media users expressed concerns about Zille's potential leadership, citing the DA's past experiences and perceived lack of confidence in black leadership. ActionSA leader Herman Mashaba, who served as Joburg mayor when he was in the DA, accused the party of not having confidence in black leadership. 'This nonsense narrative that 'Sehlare sa mosotho ke lekgowa' (a black person's medicine is a white person) must stop,' Mashaba said. 'If Helen is about fixing, let her start in Khayelitsha, Gugulethu, Michelle's Plain [sic], Langa and other townships in the Cape.' Activist and poet Ntsiki Mazwai said: 'We don't want Zille as the mayor of Joburg. That would be a huge and scary mistake which would impact the black masses negatively.' Here are more reactions on X:
