HOT News is reporting that Finance Minister Enoch Godongwana has been summoned to Luthuli House to present his final budget proposal after his initial plan, which included a 2% VAT hike, was rejected by the Government of National Unity (GNU). 

With just two days left before the revised budget is due, South Africans are anxiously waiting to see how the government will address the country’s growing revenue shortfall. 

The government needs an additional R60 billion to stabilise its finances, but with a stagnant economy, raising this amount is a challenge. Honorary Wits professor Jannie Rousseau warns that without economic growth, taxpayers will bear the burden of closing the gap. This means South Africans should prepare for increased taxes. 

Rising pressure on taxpayers and challenges within the GNU 

Ruhan Robinson, DA Shadow MEC for Finance in Gauteng, highlights that South Africa already has an overtaxed population with a small tax base. Around 500,000 individuals contribute nearly half of all personal income tax, fuelling frustration among citizens who feel their money is not being spent wisely. 

Corruption and wasteful expenditure remain rampant, particularly in smaller municipalities, but inefficiencies in major projects also drain national resources. Many believe the solution is simple—cut corruption and unnecessary spending. However, as Rousseau points out, logic often fails to influence political decision-making. 

With divisions in the GNU already delaying the process, taxpayers, economists, and investors are hoping for a budget solution that is both practical and sustainable. Whether the government can deliver remains to be seen. 

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As the South African taxpayer battles with economic instability, corruption and divisions within the GNU, sustainable solutions require accountability and transparency. Listen to the full interview on Hot 102.7’s not breaking news podcast and stay updated with Hot 102.7 FM on evolving current affairs.