Talking Heads - Daily Maverick journalists’ first impressions of Enoch Godongwana’s speech

22 Feb 2023

Daily Maverick and Business Maverick's crack team of journalists weigh in on Budget 2023 and provide a line-by-line account of their immediate thoughts. They watched the full speech so you don't have to.

	Janet Heard: Hard to not get distracted by the cheeky chatter on the parliamentary YouTube channel, with a viewer commenting on the image of seated Ministers and MPs: “so many useless people in this shot”
	Marianne Merten: And straight into rolling blackouts... SA economy at R4.6-trillion, back to pre Covid-19 pandemic levels. Deficit to be brought down without tax increases - a bit of good news for stressed consumers.
	Ray Mahlaka: The economy might be on track post Covid, but load shedding poses a serious threat. Treasury expects the economy to grow by a paltry 0.9% in 2023. It is still optimistic considering that the Reserve Bank has downgraded its forecast to 0.3%
	Ed Stoddard: "... the medium-term growth outlook has deteriorated. Real GDP growth is projected to average 1.4 per cent from 2023 to 2025, compared with 1.6 per cent estimated in October." That sadly may prove to be optimistic ... "Individuals who install rooftop solar panels from 1 March 2023 will be able to claim a rebate of 25 per cent of the cost of the panels, up to a maximum of R15 000. This can be used to reduce their tax liability in the 2023/24 tax year. This incentive will be available for one year." For just one year? That may get revisited but for now it may trigger a rush to solar panels ...
	MM: Risks - public servants salary increases & high debt service costs
	ES: Tax relief of R13 billion, that is good news for some tax payers ...
	Tim Cohen: I know its irrational, but every time I hear the the level of annual debt repayments I feel a chill at the back of my neck.
	MM: Eskom gets R254 billion debt relief!! Two parts - R184 billion full debt settlement over next three years. R70 billon "direct take over"
	RM: And over the next three years. There are strict conditions in place. Eskom cannot take up new debt from lenders. It cannot embark on large capital commitments. It’s a mechanism designed to free up money at Eskom. Money that can be channeled to the maintenance of power station.
	ES: Sin taxes of course are going up, but at least in line with expected inflation this year. Excuse me while I head out to my local bottle store ...
	MM: It's all set-out in W3 (the annex in budget documentation) - probably the most read bit of the Budget documentation. The Eskom support means government debt levels hit 73.6%.
	RM: Sjoe, still a long road ahead before the Eskom debt relief is implemented. It still requires approval and concurrence from bond holders.
	ES: Big indicator: the rand is gaining, and the yield on the 10-year government bond has fallen 8.5 basis points. The markets so far are giving this budget the thumbs up... And the JSE has slightly reversed its losses on the day. No Biblical references it seems, unless I have missed something - Enoch knows this is a secular challenge ...
	MM:It's a down to business Budget. No plants, no allegories. Just announcements. Solar tax incentives for individuals from 1 March up to R15,000 gets applause
	JH: And on the solar panels - a New tax incentive - to reduce pressure on the grid, Individuals who install from 1 march 2023 can claim rebate of 25% of cost of the panel, maximum R15 000
	MM: Business incentives more generous - business can reduce taxable income by 125% of investment in renewables.
	TC: Debt service payments, R366.8 billion, are now larger than the total health budget - plus some. In fact, debt service payments now larger than social development too. Godongwana makes a joke about new tax proposals - there are none!
	MM: No fuel levy increases! That's a relief!
	ES: Relief for vapers such products remain untaxed
	MM: No transfer duty for properties under R1.5 million. Hopefully that'll ease stepping onto the property ladder... Even in super-hyped markets like Cape Town. Back of napkin numbers - R1.5m gets you between 25 square metres to maybe 45 sqm. "No sympathy for smokers" says finance minister as he's announcing sin tax hikes.
	TC: "This is not an austerity budget. It is a budget that makes tough trade-offs in the interests of the country’s short and long term prosperity," Godongwana says. Well ... when you put it that way!In fact, since expenditure declines as a proportion of GDP (by a tiny bit) its austerity-ish!
	MM: SAA gets R1bn to wrap business rescue - and the sale to a private investor. Post Office gets R2.4billion bailout.
	Neesa Moodley: Minister was channeling Oprah Winfrey when it came to SOEs - you get a bailout, you get a bailout, you get a bailout!
	MM: Not quite the tough love expected on State-owned Entities (SOEs) - even if talk on rationalising these SOEs. Continues. Recommendations on rationalising SOEs to be expected next year's Budget. Recommendations on rationalising SOEs to be expected next year's Budget.
	MM: The finance minister thanks a veteran of Parliament's Bills Office (it ensures draft legislation is fully compliant) - Neil Bell - ahead of his retirement. "Mr Bell, a Bells to you, and the thousands of public servants who work behind the scenes to keep our country going".This is amazing! And gets applause from the parliamentary benches
	TC: On greylisting, Godongwana says SA's has done a lot to avoid greylisting, and the decision will be made on Friday. " "We should be prepared for that possibility," he says. Hard to know whether he is hinting that we will be.
	MM: "Thank you very much That is your Budget Madam Speaker". And its a wrap after some 50 minutes
	ES: Did he just thank public servants for keeping the country going? Has he ever been to a Home Affairs office? Or a police station? Or has he driven any rural roads lately? Highlights the bubble top ANC officials reside in.
	JH:What a composed contrast to Sona 2023.

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