Finance Minister Enoch Godongwana
On March 12, Finance Minister Enoch Godongwana has enough time to digest the 2025 budget proposal, 2025 budget proposals. The budget presents a paradoxical blend, developed initiatives, advanced government services, careful spending and infrastructure amplifiers – controversial elements, including VAT, bracket crawls and 1.9% increase forecast.
The battlefield was already in recent weeks in recent weeks with political parties.
Given the government of the makeup of the makeup of the National Union, we have to make a discount on the controversial concerns of ANC democratic union to pass the budget, the confiscation of the confiscation; Port powers that centralized in Cape Town and Richards Bay, including passenger trains; To accept the regulator of the World Bank; R100 billion Revioritize and a comprehensive spending review to reduce the debt burden of South Africa.
The results of the ongoing political negotiations are uncertain, but for a moment, the show and budget production reflect the effects of our institutions, especially our treasury. Last month, several red flags raised, and offered the treasury budget preparation processes.
Its functions and goals are dictated by a heuristic political whimse than sound economic principles. A surprising example, Minister Godongwana’s budget statements decided to increase VAT to 2% here, and decided to increase 2% after criticizing the criticism of stiffness.
He later noted that Duncan Pieterse, Director General of the Treasury, was looking for a repeated approval regarding the policy selection of some booking. Recently, Godongwana in Parliament, Treasury officials tried to correct the situation, believing that the VAT increase was a good idea. Of course, the proposed 2% VAT increase caused an important decline, resulting in a revised proposal for a staged increase over two years.
What is the virtuosity that the previous budget opinions of the treasury have already determined the institutional position in VAT, resulting in the desired results of the 2018 growth. So what changed? What new evidence did it appear to contradict his previous position?
Given the effects, we should ask for what political leaders affect political leaders that affect budget bodies, not evidence-based thinking, but on the basis of personal bias and ideology. In addition, we must strengthen the institutional framework of the treasury, ensure that the proposals of the impartial civil servant shall ensure the objective analysis of proposals?
Significant cases also show that the treasury institutions are sensitive to evidence and forecast of the scientific row. The budget proposal without a serious approach is to a concrete financial strategy.
The average term financial strategy is a 1.9% increase pace for 2025, President Cyril Ramaphosa is a growth rate for 2025 by reducing the nation address and global, developing market and Saharan growth forecasts. In addition, the Treasury, in 2023, has a date of revision of the forecast that evaluates the evaluation of economic growth in the previous 12 years.
The forecast is the main component of budget proposals, but the trace of the treasury, consistently violated with weak predictions. This raises criticism – a result of serious revitalization of these inaccuracies or the result of consistent political pressure or the result of consistent political pressure, the result of consecutive political pressure, ignoring empirical evidence? No matter what, the volatility of the treasury is exciting and simply unacceptable.
The main term of our social agreement is that civil servants serve to prioritize the interests of the state to better. The institutional perspective is very important in the treasury and the right to serve South Africa by analyzing the impartiality and serious evidence of well-trained professionals.
After the budget Saga, it is important to prioritize this critical issue in the upcoming discussions.
Siseko Maposa Surgeter Associates is the director of management advice. He is a regular commentator of the political economy.
