Finance Minister Enoch Godongwana has warned that Budget 2024 will need to propose tax measures to raise additional revenue of R15-billion in the 2024/2025 financial year, starting in April 2024.

South Africa's Minister of Finance, Enoch Godongwana will present the 2024 Budget speech on 21 February. The 2024 Budget will require disciplined budgeting, enhanced tax collection, efficiencies, responsible spending and the promotion of sustainable economic growth to strike a balance between fostering economic development and alleviating the burden on South African households.

Recommendations stemming from the Medium-Term Budget Policy Statement suggested that the government should prioritise its efforts on efficiencies of revenue collection by modernising tax systems, deploying artificial intelligence and improving digitisation instead of resorting to tax hikes. The minister has warned that Budget 2024 will need to propose tax measures to raise additional revenue of R15-billion in the 2024/25 financial year, starting in April 2024.

Tax collections to end November 2023 are less than 2% up on the same period the year before, with expenditure being 8% higher. While personal income tax and VAT is 8% up during this period, corporate income tax was down by 14%, confirming the pressure on margins at companies and the downturn in commodity prices that was a windfall in prior years.

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