Presented by Sage
Industry News

What to expect from South Africa’s 2024 Budget Speech

Budget Speech season is here and based on Finance Minister Enoch Godongwana’s mid-term presentation, we can expect many complex challenges to be unpacked.

Godongwana has projected that the government will miss its revenue targets by nearly R57 billion for the 2023/24 tax year, and then by a further R54 billion for the 2024/25 financial year.

As a result, Godongwana has made it clear that South Africans should brace for financial challenges – including a weaker economy and less government spending.

It is not all negative, however, and leading financial software provider Sage is expecting to see several good news stories from Budget Speech 2024.

Below is a summary of the pressing topics Sage expects to be discussed.

Good – Minimal PAYE increases

Godongwana is aware of the challenges South Africans face financially – particularly for low- and middle-income earners.

He will be reluctant to increase income tax for these groups; instead, he is only expected to raise the tax bracket thresholds to account for inflation.

Bad – NHI delays

The NHI has faced many roadblocks, and it is likely that its implementation will be delayed.

Reasons for this include uncertainty about how it will be funded, as well as the challenge of introducing new payroll taxes.

Good – Diesel refunds for smaller generators

Some experts have speculated that in this budget speech, Godongwana will offer a rebate to businesses using their own generators to produce electricity.

This measure would benefit small and medium businesses in particular – and these organisations desperately need financial assistance.

Bad – Fuel levy increases

Despite rising fuel prices, the government has supported South Africans for the past few years by not adjusting the fuel levy.

It may be forced to change this in the 2024 budget speech to keep the fuel levy in line with inflation.

Good – Solar energy rebates

The government’s solar panel subsidy was well-received, and Electricity Minister Kgosientsho Ramokgopa has said he supports incentive continuing.

He has also proposed expanding it to include inverters and batteries – but there have been many in power who oppose him.

It is, therefore, not guaranteed that solar rebates will continue in South Africa.

Bad – More borrowing

The 2024/25 financial year funding gap is expected to exceed R54 billion.

To compensate, PWC predicts that Godongwana will decrease spending while increasing borrowing.

The latter is particularly concerning, as taking on more debt is a short-term solution that will make long-term economic recovery more challenging.


Sage is the global leader in financial software and can help your business deal with all the ups and downs of the 2024 Budget Speech.

Its tools span accounting, payroll, HR, and much more.

Visit Sage for the best financial advice and tools.


Top JSE indices