Chief economist at Efficient Group Dawie Roodt says fiscal sustainability should be a top priority for newly-appointed Finance Minister, Enoch Godongwana as he gets down to work following a cabinet reshuffle on Thursday.
Godongwana takes over from Tito Mboweni at a time when government spending is under pressure.
The coronavirus pandemic has also negatively affected government’s revenue.
Roodt says the new minister will have to withstand pressure from his cabinet colleagues for more government spending.
“There are many challenges waiting for the new Minister of Finance because we are in big trouble. We need to spend less money and we cannot afford to support state-owned enterprises,” adds Roodt.
A looks at the new Finance Minister:
Another economist, Isaac Matshego says he expects continuity with Godongwane at the helm of National Treasury.
“The rand came under some pressure on the announcement that Tito Mboweni had asked the president to release him from his position. I do believe that Godongwana is a great appointment – someone who understands the challenges faced by the fiscus. He will continue on a path to reduce debt stock and improve efficiency of government spending,” says Matshego.