Unpacking the 2024 National Budget: Where your taxes really go

My Money My Lifestyle

In this insightful episode of My Money My Lifestyle, host Maya Fisher-French takes you behind the scenes of South Africa's national budget with the expertise of Mr. Edgar Sishi, Deputy Director General of National Treasury and Head of the Budget Office at National Treasury.
As the nation grapples with the impact of financial decisions, Maya and Mr. Sishi dissect the complexities of a R2.37 trillion budget, the daunting reality of debt servicing costs, and the delicate balance of tax collection.
Ever wondered about the gargantuan task of managing a country's budget amidst divergent opinions on taxation and spending? This episode shines a light on the intricate process of fiscal policy-making, the rationale behind the absence of bracket creep relief, and the contentious topic of wealth taxes. Maya also probes into the government's social wage spending, which accounts for a staggering 60% of the budget, and the introduction of the Corporation for Deposit Insurance, set to safeguard individual deposits up to R100,000.
But it's not just about the big numbers and policies. Maya and Mr. Sishi delve into the future of tax-free savings accounts and the innovative use of the gold and foreign exchange contingency reserve account to reduce national borrowing. This episode is a must-listen for anyone seeking clarity on South Africa's financial roadmap and the implications for personal finance.
Tune in to demystify the national budget, understand the implications of fiscal drag on your pocket, and explore the strategies National Treasury employs to ensure economic stability and growth. Get ready to be informed and empowered with this deep dive into the fiscal fabric of South Africa.
📋 Episode Chapters
(00:00) Maya Fisher French: Welcome to My Money, My Lifestyle podcast
(00:46) The Government plans on spending 2.37 trillion rand over the next financial year
(02:54) Mr. Edgar Sishi - Deputy Director General at National Treasury
(04:43) At National Treasury, there are many differing opinions about how to run budget
(09:14) South Africa's debt as a percentage of GDP is higher than other emerging markets
(13:40) Taxation affects us the most when preparing National Budget
(21:56) One of the things that we did in this budget is not provide bracket creep relief
(26:29) Six out of every ten rand collected in taxes is spent on social services
(31:40) South African Reserve Bank is taking money from its contingency reserve account
(37:59) On 1 April 2024, the corporation for deposit insurance comes into effect
(39:51) The future of Tax-Free Savings Accounts