South Africa finance ministry faces competing pressure

Significance

This occurs in a context of market concerns over the recent exits of five senior National Treasury (finance ministry) officials and serious social and economic challenges manifested in high unemployment, inequality and poverty.

Impacts

• Godongwana will resist efforts to create a basic income grant.
• Higher commodity prices may increase expected revenues, temporarily allowing both increased spending and deficit reduction.
• Weak results in the November 1 municipal elections may spur greater pressure for more spending.