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The Budget & You

Each year the government announces how they expect to spend the money they will bring in in taxes. This is done in February and is known as the Budget speech.

What To Expect

Finance Minister Enoch Godongwana will set out the expected sources of income and the plans for spending.

Given the serious challenges with a weaker Rand, High levels of inflation, high interest rates and ongoing load shedding many eyes (local and international) will be watching closely to see if government has realistic plans to deal with the situation.

‘Should these plans sound weak or unrealistic this will cause international ratings agencies to warn people off investing in SA’

Should these plans sound weak or unrealistic this will cause international ratings agencies to warn people off investing in SA (even with its already low “Junk” Status). If the plans are ill thought out then residents will feel the effects as spending goes to the wrong places and problems grow.

The challenge is, of course, that their can never be enough money for all the things needed particularly given the low rates of employment and low levels of entrepreneurship in South Africa. Many residents have become very dependent on grants just to try and make ends meet (which is becoming more and more tricky).

If you too feel like you have “too much month in your money” then consider having a close and realistic look at your budget. Alternatively, ask a Debt Counsellor for some advise about your budget.

 

The budget speech will be delivered on the 22nd of February 2023