South Africans will experience more difficult times as Finance Minister Enoch Godongwana has warned that taxes are expected to increase in the coming year.
During his speech in parliament about the budget for the next few years, he mentioned that the economy wasn’t growing well, not enough money was being collected, and the interest costs on the country’s debt were quickly rising. Because of these reasons, it is likely that taxes will be increased.
The government will continue to take steps to reduce its spending. This will involve making its departments smaller. Godogwana said this.
He said he would make sure important services like healthcare, police, and education are safe from budget reductions.
However, trade unions and civil society groups cautioned that limited funds would make it difficult to hire new teachers and put added strain on healthcare services.
The government responded to social activists’ demands and decided to extend a monthly financial assistance given to over eight million people who are facing financial problems.
The monthly payment started in 2020 to assist people temporarily during the pandemic lockdowns.