Finance Minister Enoch Godongwana delivered his second national Budget speech on Wednesday afternoon, saying National Treasury has a fiscal strategy to balance the country’s economic pressing challenges.
The National Treasury said prolonged and debilitating power cuts, weaker global economic conditions and rising inflation are expected to reduce the country’s gross domestic product growth to less than 1% in 2023.
There can be no growth turnaround without a reliable supply of power. And a large part of this year’s budget is devoted to Eskom. Treasury has also signed off on a major debt-relief arrangement for Eskom. Which will see R254 million of the utility’s debt transferred to the government balance sheet.
This will be subject to strict conditions. Different political parties responded to the Minister’s budget speech, and no doubt it is humanly possible to please everyone. Others will always see the good not being oblivious to the challenges clearly visible while others, chose to see only what they want to see.
ActionSA’s Athol Trollip welcomed the minister’s takeover of Eskom’s debt; however, corruption needed to be tackled. South Africa will come out of its current power challenges for the benefit of the whole country.