The Institute of Race Relations (IRR) says it is deeply concerned about the state of the country’s public finances. Minister Enoch Godongwana delivered the Medium-Term Budget Policy Statement (MTBPS) yesterday at the Good Hope Centre in Cape Town.
Godongwana announced that South Africa has been experiencing deficits since 2008. As a result, the government will be borrowing an average of R553 billion per year over the medium term.
Godongwana says the focus will be on sectors including health, education and police services.
“Additional funding of R24 billion this year and R74 billion over the medium term will be used to fund the 2023/24 wage increase and the associated carry-through costs in these sectors,” he said.
According to IRR Campaign Manager Mlondi Mdluli under these circumstances, the implementation of government programmes including the National Health Insurance (NHI) should be reconsidered.
“Against this background, it is obvious that the implementation of the National Health Insurance will only further strain the country’s already weak fiscal position. Therefore, its implementation should be rejected.”
Mdluli says it is concerning that Godongwana did not mention the costs of NHI.
“NHI will have a greater impact on the country’s already weak fiscus. The escalation of the monthly budget deficit to R143.8 billion in July was a clear indication that South Africa is headed for a very tough period. The continuous increase in the government deficit is the main reason the country finds itself in the debt crisis that it is in.”
Minister Enoch Godongwana’s MTBPS:
