National budget to set SA on growth trajectory, says president

President Cyril Ramaphosa is convinced the national budget tabled by finance minister Enoch Godongwana last week will achieve rapid and inclusive economic growth while supporting the nation’s developmental goals.

In his weekly newsletter, Ramaphosa detailed how the budget would take SA further along the path of reviving the economy and rebuilding state institutions in at least three ways.

“First, the 2024 budget shows we are staying the course in our commitment to achieve a sustainable fiscal trajectory,” he said.

“Over the past 15 years, our debt burden has grown to a point where we are spending more on interest payments than we are on education or healthcare services.

“By reducing debt, we will create more space to spend on the things that matter — building our infrastructure, improving our schools and hospitals and making our communities safer.”

“Second, the budget protects critical services and social spending, making sure government can deliver on its most important obligations to all South Africans.

“We have allocated additional funds for service delivery which will help to pay the salaries of police officers, teachers, nurses and doctors.

“This year alone, we will spend more than R480bn on education, R272bn on health and R265bn on other services like water, housing and public transport.

“A further R7.4bn will go towards the presidential employment stimulus, which has already created more than 1.7million opportunities for work and livelihoods over the past three years, ensuring key programmes like school assistants will continue.”

He said the government was increasing social grants to help poor households cope with the rising cost of living.

Additional money had been allocated to the fight against corruption and state capture.

“Third, the budget includes new measures to support growth and create jobs while rebuilding infrastructure.

“A new grant has been established to fund the rollout of smart meters in municipalities which will help modernise our electricity system and reduce load-shedding.

“A generous incentive will be introduced to support the manufacturing of electric vehicles from 2026 onwards as part of our commitment to position SA as a leading player in the green economy.”

The 2024 budget showed “we are heading in the right direction”, he said.