Godongwana gets finances on stable path while providing relief
Measures of financial health look far rosier and ordinary South Africans gain from tax windfall
Finance minister Enoch Godongwana stuck to his predecessor’s pledge to cut corporate tax and provide relief to workers while resisting pressure to use an almost R200bn revenue windfall to commit himself to a permanent increase in welfare spending.
In a market-pleasing budget, Godongwana pledged to maintain fiscal discipline and said SA would record a primary surplus, meaning that revenue will be higher than spending excluding interest payments, a year earlier than planned. Officials said 45% of the extra revenue would be used to pay down debt and reduce the deficit, with the rest used to pay for the Covid-19 grant, allocations to provinces, financial support for students and health...