The 2024 National Budget Speech, delivered by the Minister of Finance, Mr Enoch Godongwana, was a welcome surprise relative to expectations of further deterioration.
It essentially raised taxes (by R18bn for individuals - in an election year) and targeted more realistic expenditure growth (compared to last year’s) in areas such as the wage bill and the SRD grant.
The policy of fiscal consolidation is alive and well and helped along by some monies from the unrealised profits from the Reserve Bank’s reserves, which will see the debt-to-GDP ratio peaking at a lower level than what was envisaged last November.
In this environment, it is important that investors focus on what they can control which is their investment planning and goal setting. In this review we look at the impact of the Budget Speech (and general country money management) on the investment markets and address how investors can continue to invest for financial freedom.
Jason Swartz, Portfolio Manager at Old Mutual Investment Group, looks at the impact of the Budget Speech, the outlook for investors and how to keep your investments ahead of inflation to build wealth. He also talks to Old Mutual Investment Group's strategy and how it is positioned to take advantage of and/or protect against investment market movements.
Jason Swartz – Portfolio Manager at Old Mutual Investment Group
Tana Mongwe, Investment Analyst at Old Mutual Investment Group, reflects on National Treasury’s gross fixed capital formation (public infrastructure) plans to unlock economic growth through planned investments in energy, rail and transport for State Enterprises such as Eskom, Transnet and Sanral. She also explains what it means for investment markets and how investors should take advantage of this.
Tana Mongwe - Investment Analyst at Old Mutual Investment Group